ABC Ltd. has Earnings Before Interest and Taxes (EBIT) of Rs. 4,00,000. The firm currently has outstanding debt of Rs. 15,00,000 at an average cost, cost of debt of 10%. Its cost of equity capital is estimated to be 16%. (i) Determine the current value of the firm using the Traditional Valuation approach. (ii) Determine the firms overall capitalization rate. (iii) The firm is considering to issue capital of Rs. 5,00,000 in order to redeem Rs. 5,00,000 debt. The cost of debt is expected to be unaffected. However, the firm's cost of equity capital is to be reduced to 14% as a result of decrease in leverage. Would you recommend the proposed action