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

Plan I: 100% Equity Capital (Face Value $100)

Plan II: 50% Equity Capital (Face Value $100) and 50% Debenture (interest rate 6%)

Plan III: 50% Equity Capital (Face Value $100) and 50% Preference Shares (rate of dividend 6%)

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

The rate of tax applicable to the company is 50%. The company expects an EBIT of $4,000,000.

Calculate the Indifference point of EBIT between plans III and IV