Q1) XYZ.Ltd has a share capital of 1,00,000 divided into share of 10 each .It has a major expansion program requiring an investment of another 50,000. The management is considering the foll0owing alternatives for raising amount: i) Issue of 5000 equity shares of 10 each ii) Issue of 5000,12% preference shares of 10 each iii) 10%, issue of debenture of 50,000. The company 's present earnings before interest and tax (EBIT) are 40.000 per annum subject @tax 30\%.You are required to calculate the effect of each of the above firancial plan on earning per share assuming: a) EBIT continues to be the same even after expansion b) EBIT increases by 10.000