Exercise 2: Dhofar Power Company has invented a new product that will revolutionize the market. The company is certain there will be demand from millions of people around the world, and therefore it needs to build a new factory. The company is planning to raise OMR 200000 for constructing the factory. The Company's existing capital structure consists of 900 common stock. The company has following alternative plans of financing 1. To issue 1500 common stock @ OMR 950 each II. To issue 2000 8% Preferred Stock @ OMR 79 each III. To issue 10000, 9% Bonds @ OMR 15 each The company's EBIT is 95000. The corporate Tax rate is 30% 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 100 common stocks, how much dividend (part of profit) you will get if company choose Plan 1, Plan 2 or Plan 3