X and Y are the same risk company. Company Y has Debenture Tk. 2,50,000. Interest rate @10%. Value of the companies and Cost of capital of both firm are given below: Particulars Earning before interest & tax (EBIT) Less Interest on Debenture Net Income (NI) Cost of Equity (Ke) Market value of Share Capital (NI/Ke) Value of Debenture (B) Value of the firm V = (S+ B) Average cost of capital (Ko) = (EBIT/V)*100 Company - X 3,75,000 3,75,000 12.50% 30,00,000 30,00,000 12.50 % Company - Y 3,75,000 25,000 3,50,000 14% 25,00,000 2,50,000 27,50,000 13.64% Miss. Mukta, who 10% equity share of X Company. Should she prefer switching from the arbitrage process? Is it possible for Miss. Mukta to reduce his outlay to earn same return through the use of arbitrage? Illustrate it.