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The following details are available : Existing equity capital 10,000 shares of Rs. 10 each Proposals to Raise Rs. 1,00,000 with following alternatives (a) Debt

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The following details are available : Existing equity capital 10,000 shares of Rs. 10 each Proposals to Raise Rs. 1,00,000 with following alternatives (a) Debt at 10% (b) Equity capital @Rs. 10 per share (c) Preference shares of Rs. 10 each @12\% divic EBIT Rs. 80,000 Tax Rate 50% Advise which of the method of financing would be most suitable. 22 Which is the most optimum proposal of financing

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