The capital structure of the Beez Ltd. consists of the 500,000 ordinary shares valued $1 fully paid each, and $250,000 borrowings at rate of 8%. The EBIT is expected to be $450,000 and the tax rate is 25%.

The Beez for fundraising of additional $250,000 has 2 options from either of the below programs:

1. Issuing $500,000 ordinary shares at $0.50
2. Issuing $250,000 debentures at rate of 10%