Read the following passage and answer the questions.
A finance manager in an outlet raised Rs. 3.5 crore through a mix of debt and equity in a ratio of 4:3 to open a new outlet, but the actual amount required was Rs. 3 crore. The aim of the finance manager is to maximize the shareholder’s wealth. Keeping this in mind, he reinvested the excess amount of Rs. 50 lakh in a fixed deposit carrying 6% interest p.a. while the cost of capital is 10% p.a.