Assignment Exercise 2: Dhofar Company is planning to raise 1000000 for constructing a new factory in order to increase its production. The Company's existing capital structure consists of 500 common stocks. The company has following alternative scheme of financing. 1 To issue 5000 common stock @ 100 each AND issue 5000, 8% Bonds @ 100 each II. To issue 5000 10% Preferred Stock @ 100 each AND issue 5000, 9% Bonds @ 100 each The company's EBIT is 300000. The corporate Tax rate is 25% a) Kindly suggest which alternative plan of financing is better and why? b) Assume you are the finance manager of this company and during the current situation of pandemic Covid-19, which financing alternative will you choose and why? c) Assume you are a stockholder in this company with 200 common stocks, how much dividend (part of profit) you will get it company choose Plan 1 or Plan 2