Date Wireless has the following assets:

Its operating profit (EBIT) is expected to be $1.0 million. Its tax rate is 40 percent. Shares are valued $25. Capital structure is either short-term financing at 6 percent or equity. There is no long-term debt.
a. Calculate expected earnings per share (EPS) if the firm is perfectly hedged.
b. Calculate expected EPS it has a capital structure of 40% debt.
c. Recalculate a and b if short-term rates go to 11 percent.

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Current assets: $1,000,000 Temporary.. Permanent 1,000,000 Capital Assets 7,000,000 $9,000,000 Total.....