solve the 7th and 8th ques step by step

7. A company needs Rs.500,000 for construction of a new plant. The following three financial plans are feasible: (i) The company may issue 50,000 common shares at Rs.10 per share; (ii) The company may issue 25,000 equity shares at Rs.10 per share and 2,500 debentures of Rs. 100 bearing 8% rate of interest; (iii) The company may issue 25,000 equity shares at Rs.10 per share and 2,500 preference shares at Rs. 100 per share bearing 8% rate of dividend. If the company's EBIT are Rs.10,000; Rs. 20,000; Rs.40,000; Rs.60,000; and Rs.100,000 what are the earnings per share under each of the three financial plans? Which alternative would you recommend and why? Determine the indifference points. Assume a corporate tax rate of 50%. 8. A company requires capital funds of Rs.5 crores and has two options: (i) To raise the amount by the issue of 15% debentures, and (ii) To issue equity shares at Rs. 20 per share. It already has 40 lakhs equity shares issued and debt financing of Rs. 6 crores at the rate of 12%. Find out the expected EPS under both financing options at the given EBIT levels of Rs.2 crores and Rs.7.5 crores. What should be the choice of the company given that the applicable tax rate is 50%