b) XYZ Company has currently and equity share capital of s 40 lakhs consisting of 40,000 equity shares of Tk. 100 each. The management is planning to raise another Tk. 30 lakhs to finance a major programme of expansion through one of the four possible financing plans.

Entirely through equity shares

Tk. 15 lakhs in equity shares of Tk. 100 each and the balance in 8% debentures.

Tk. 10 lakhs in equity shares of Tk. 100 each and the balance through long-term borrowings at 9% interest p.a.

Tk. 15 lakhs in equity shares of Tk. 100 each and the balance through preference shares with 5% dividend. The companys EBIT will be Tk. 15 lakhs. Assuming corporate tax of 50%. Determine the EPS and which financing plan should the firm select?