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Plan 1 Plan 2 Common shares 15million 8 million Preferred shares 3 million 2 million Debt 5 million 13 million Debt cost 8% PS cost-

Plan 1 Plan 2

Common shares 15million 8 million

Preferred shares 3 million 2 million

Debt 5 million 13 million

Debt cost 8%

PS cost- 15%

Tax rate is 30% What is the EPS on indifference point?

Question 13 options:

0.27

0.43

0.54

none of them

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