Question: Date Wireless has the following assets Current assets Temporary Permanent Capital assets $1,040,000 1,080,000 7,200,000 Total assets $9,320,000 Ils operating profit (EBIT) is expected to

 Date Wireless has the following assets Current assets Temporary Permanent Capital

Date Wireless has the following assets Current assets Temporary Permanent Capital assets $1,040,000 1,080,000 7,200,000 Total assets $9,320,000 Ils operating profit (EBIT) is expected to be $1.4 million. Its tax rate is 40 percent. Shares are valued at $25. Capital structure is either short-term financing at 6 percent or equity. There is no long-term debt. (Round the final answers to 2 decimal places.) a. Calculate expected earnings per share (EPS) If the film is perfectly hedged. EPS $ b. Calculate expected EPS if it has a capital structure of 40% debt. EPS $ c. Recalculate a and b if short-term rates go to 11 percent Hedged Capital structure EPS $ $

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