Rolex Company is planning an expansion programme which will required Rs. 60 crores and can be funded through one of the three following options 022 [10 Marks] 1. Issue further equity share of Rs. 100 each at par 2. Raise loans at 14% interest 3. Issue preference share at 10% 4. Issue debenture at 12% Present paid up capital is Rs. 120 crores and average annual EBIT is Rs. 24 crores. Assume IT rate at 30%. After the expansion, EBIT is expected to be Rs. 30 crores per annum Calculate EPS under the four financing options indicating the alternative giving the highest return to the equity shareholders