The board of directors of Jibran Publishing, Limited, has commissioned a capital structure study. The company has total Assets of Rs. 40,000,000. It has earnings before interest and taxes of Rs. 8,000,000 and is taxed at a rate of 40%. The following data is available to determine optimum capital structure. % of Debt 0 10 20 30 40 50 60 EBIT Total Assets (in Rupees) (in Rupees) 8,000,000 40,000,000 8,000,000 40,000,000 40,000,000 8,000,000 40,000,000 8,000,000 40,000,000 8.000.000 40,000,000 8.000.000 40,000,000 8,000,000 Cost of Debt 0.0% 7.5 8.0 9.0 11.0 12.5 15.5 Required Return 10.0% 10.3 10.9 11.4 12.6 14.8 12.5 Required: Calculate EPS and Market price for each option of debt borrowing. Assume growth rate is zero and all earnings are distributed. (Marks 8) b. Prepare a recommendation to the board of directors of Jibran Publishing that specifies the degree of indebtedness that will accomplish the firm's goal of optimizing shareholder wealth. Use your findings in part a to justify your recommendation. (Marks 7) (Total Marks 15)