Delta Ten Limited (DTL) is a new company and management are trying to decide on a financing structure. They want to raise $12,000,000. Option 1: DTL is considering is all equity financed firm, DTL would issue 4,000,000 at $3.00 par value shares on issue. Option 2: The second option is to fund 30% of the firm with debt and the balance with ordinary shares at an issue price of $3 per share. DTL has been advised that the cost of debt finance would be 15%pa due to its relative risk. The company tax rate is 30%. a) How many shares will be issued under each option? b) If DTL expect EBIT to be $1,000,000 what option would you recommend to Delta Ten Limited's management? Wheti an EDIT