XYZ Company requires $$1,000,000$ for its proposed plan. The following financial alternatives are available:

$$ Plan A: $50\%$ Equity Capital $($Face Value $$100)$ and $50\%$ Debenture $($interest rate $4\%)$

$$ Plan B: $25\%$ Equity Capital $($Face Value $$100),25\%$ Debentures $($interest rate $4\%),$ and $50\%$ Preference Shares $($rate of dividend $6\%)$

The rate of tax applicable to the company is $35\%.$ The company expects an EBIT of $$4,000,000.$

Calculate the following: Indifference point of EBIT between plans A and B