Determine the indifference points of EBIT levels between three alternative financing plans: (1) issue 80,000 equity shares at 50 each; (2) issue 12 per cent bonds; (3) issue of 15 per cent preference shares of Rs. 10 Face Value. The company already have 2,00,000 equity shares. The company is subject to 35 percent rate of tax. Which financing plan will you prefer, and why, if the expected EBIT level is lying below these indifference levels? Also, show graphically.