Q5) a) A company is contemplating to raise additional Fund of Rs. 20,00,000 for setting up a project. The company expects EBIT of Rs. 8,00,000 from the project. [10] Following alternating plants are available: i) To raise Rs. 20,00,000 by way of equity share of Rs.10 each. ii) To raise Rs. 10,00,000 by way of equity shares and Rs, 10,00,000 by way of debt @10%. iii) To raise Rs, 6,00,000 by way of equity and rest Rs. 14,00,000 by way of preference shares (G) 14%. iv) To raise : Rs. 6,00,000 by equity shares Rs. 6,00,000 by debt (a) 10% Rs. 8,00,000 by 14% preference shares. The company is in 60% Tax bracket which option is best? [5860]410