Question: Date Wireless has the following assets. Current assets: Temporary Permanent Capital assets $1.070,000 1,140,000 7,350,000 Total assets $9,560,000 59 Its operating profit (EBIT) is expected
Date Wireless has the following assets. Current assets: Temporary Permanent Capital assets $1.070,000 1,140,000 7,350,000 Total assets $9,560,000 59 Its operating profit (EBIT) is expected to be $17 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.) a. Calculate expected earnings per shale (EPS) If the film is perfectly hedged EPS $ b. Calculate expected EPS if it has a capital structure of 30% debt EPS $ c. Recalculate aand bf short term rates go to 12 percent Hedged Capital structure EPS $ 5
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
