my student number 8175

Q1. Venus LLC has an all equity share capital of at $10 per share. The company wishes to raise an additional funds of $100,000 for expansion cum modernization plans. The company plans the following financing schemes: - (10 marks) a) Issue of common stock. b) Half financing need from equity share capital, and the remaining from preference share capital @ 9% pa. c) All debt financing @ 10% p.a. d) Half financing needs from preference capital with the rate of dividend at 9% and the remaining half from debt capital @ 10%p.a. The company's existing earnings before interest and tax (EBIT) are $60,000. The corporate rate of tax is 15%. Determine EPS in each plan and comment on the implications of financial leverage. NOTE: The existing number of shares in the question is same as your student number. For