Rise Ltd., a listed company having registered office in Delhi, has proposed two financial plans. Details of the same are given below: Sources of funds Plan - 1 Plan - 2 Equity shares of ₹100 each ₹22,50,000 ₹45,00,000 12

Verification Table at Indifference Point (EBIT = ₹17,16,154) Particulars Plan-1 Plan-2 Expected EBIT (₹) 17,16,154 17,16,154 Less: Interest on Debentures (₹) 1,00,000 3,30,000 Equity before tax (₹) 16,16,154 13,86,154 Less: Taxes (35%) (₹) 5,65,654 4,85,154 Earnings after tax (₹) 10,50,500 9,01,000 Less: Pref. Share dividend (₹) 6,00,000 NIL Earning for equity shares (₹) 4,50,500 9,01,000 Number of shares 22,500 45,000 EPS (₹) 20.02 20.02 The table verifies that at the indifference point of EBIT ₹17,16,154, the Earnings Per Share (EPS) for both Plan-1 and Plan-2 are equal (₹20.02), confirming the accuracy of the indifference point calculation.