The Finance Manager of newly established Naturo Ltd. is considering three financial plans for financing Rs. 60 lacs for various capital projects. These plans are: (A) Equity capital of Rs. 60 lacs, (B) Rs 30 lacs through 10% debentures and Rs 30 lacs through equity, (C) Rs. 20 lacs through 13% preference shares and Rs.40 lacs through equity shares. The equity shares are raised at the face value of Rs.100 and company has a tax rate of 40%. The company is expecting an EBIT of Rs.8 lacs on Sales of Rs. 30 lacs, variable costs of Rs. 12 lacs and fixed costs of Rs. 10 lacs. a. Calculate the expected Degrees of operating leverage, financial leverage and combined leverage b. Give EBIT-EPS equations for each of the three plans c. What is the indifference EBIT between () plans A and B and (ii) plans A and C d What will be the EPS in all three plans for expected EBIT