A company likes to invest Rs 20,00,000 and maintains its capital structure at its book value. Expected EBIT is Rs 3,20,000. In order to have an optimal capital structure, indicate the debt-equity...

A company likes to invest Rs 20,00,000 and maintains its capital structure at its book value. Expected EBIT is Rs 3,20,000. In order to have an optimal capital structure, indicate the debt-equity ratio based on:

(a) M-M approach,

(b) traditional approach.