Christensen & Assoc. is developing an asset financing plan. Christensen has $500,000 in Current Assets (of which 40% are considered temporary) and $900,000 in Capital Assets. A) Assuming a perfect hedge, how much of the assets should be financed with short term financing? How much with long term financing? B) Ignore the perfectly hedged calculation above. Assume all capital assets are financed with long-term financing. The remaining assets are financed with short term financing. Capital structure is either short-term financing at 7% or equity (no long term debt). Shares are valued at $20. Calculate Earnings After Taxes (EAT) and Earnings per Share (EPS) if EBIT = $325,000 and the tax rate is 25%. Christensen & Assoc. is developing an asset financing plan. Christensen has $500,000 in Current Assets (of which 40% are considered temporary) and $900,000 in Capital Assets. A) Assuming a perfect hedge, how much of the assets should be financed with short term financing? How much with long term financing? B) Ignore the perfectly hedged calculation above. Assume all capital assets are financed with long-term financing. The remaining assets are financed with short term financing. Capital structure is either short-term financing at 7% or equity (no long term debt). Shares are valued at $20. Calculate Earnings After Taxes (EAT) and Earnings per Share (EPS) if EBIT = $325,000 and the tax rate is 25%