Question: Date Wireless has the following assets: Current assets: Temporary Permanent Capital assets $1,030,000 1,060,000 7,150,000 Total assets 39, 240,000 Its operating profit (EBIT) is expected
Date Wireless has the following assets: Current assets: Temporary Permanent Capital assets $1,030,000 1,060,000 7,150,000 Total assets 39, 240,000 Its operating profit (EBIT) is expected to be $1.3 million. Its tax rate is 30 percent. Shares are valued at $20. Capital structure is either short-term financing at 5 percent or equity. There is no long-term debt. (Round the final answers to 2 decimal places.) 0. Calculate expected earnings per share (EPS) If the firm is perfectly hedged. EPS $ b. Calculate expected EPS if it has a capital structure of 30% debt. EPS c. Recalculate a and bif short-term rates go to 12 percent. EPS 3 Hedged Capital structure 5
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