Question 6: Z Limited is considering the installation of a new project costing 80,00,000. Expected annual sales revenue from the project is 90,00,000 and its variable costs are 60 percent of sales. Expected annual fixed cost other than interest is 10,00,000. Corporate tax rate is 30 percent. The company wants to arrange the funds through issuing 4,00,000 equity shares of 10 each and 12 percent debentures of 40,00,000. You are required to: () Calculate the operating, financial and combined leverages and Earnings per Share (EPS). (1) Determine the likely level of EBIT, if EPS is (1) 4, (2) *2, (3) *0.