Ramu Ltd. wants to implement a project for which 25 lakhs is required. Following financing options are at hand: Option 1: Equity Shares 25,000 @100…

Ramu Ltd. wants to implement a project for which 25 lakhs is required. Following financing options are at hand: Option 1: Equity Shares 25,000 @100 Option 2: Equity Shares 10,000 @100 12% Preference Shares 5,000 @100 10% Debentures 10,000 @100 What is the indifference point & EPS at that level of EBIT assuming corporate tax to be 35%.