Section - B: Attempt all the questions. Each question carries 14 marks. [28 Marks Q4. Raj Ltd. has a share capital of $100,000 divided into a share of $10 each. It has major expansion programme requiring an investment of another $50,000. The management is considering the following alternatives taking into account 40%. 1) Issue 5,000 equity shares of $10 each 2) Issue of 10% (interest) debentures of $50,000 At present company's EBIT is $40,000 p.a. Required: A) Using EPS of above alternatives suggest the best alternative. Also, why a corporation should use EPS for the selection of alternative to raise finance and design its capital structure? Explain in detail. 17 Marks B) A new Multi-National Corporation (MNC), is in the process of designing their capital structure. Using the policies and theories available in capital structure, suggest a best approach which suits the current scenario of Pandemic. You can use rough estimates. 17 Marks [AUDC - WP] Section - B: Attempt all the questions. Each question carries 14 marks. [28 Marks Q4. Raj Ltd. has a share capital of $100,000 divided into a share of $10 each. It has major expansion programme requiring an investment of another $50,000. The management is considering the following alternatives taking into account 40%. 1) Issue 5,000 equity shares of $10 each 2) Issue of 10% (interest) debentures of $50,000 At present company's EBIT is $40,000 p.a. Required: A) Using EPS of above alternatives suggest the best alternative. Also, why a corporation should use EPS for the selection of alternative to raise finance and design its capital structure? Explain in detail. 17 Marks B) A new Multi-National Corporation (MNC), is in the process of designing their capital structure. Using the policies and theories available in capital structure, suggest a best approach which suits the current scenario of Pandemic. You can use rough estimates. 17 Marks [AUDC - WP]