Perdana Bhd. has this capital structure at present:

Book value

Bond (8% coupon rate) RM 600,000

Preferred stock (5% dividend) RM 900,000

Common stock (RM 20 PAR) RM 2,000,000

The expected earnings before interest and taxes (EBIT) is RM 1.2 million. The tax rate is 40%. This company plan to raise RM 2 million for future projects. These are two alternatives available:

	PLAN 1	PLAN 2
BOND	Issue RM 1 million 7% interest	50% of the funds obtained through debt 9% interest
PREFERRED STOCK	Issue RM 500,000.00 of 5% preferred stock	-
COMMON SHARES	Issue RM 500,000.00 of common stock at RM 20.00 per share. The floatation cost is RM 4.00.	The other 50% is through common stock at RM25.00 per share.

i) Calculate the earnings per share for each plan

ii) The point of indifferent for EBIT