Question: Exam - The real thing Shved Help Save & E Date Wireless has the following assets: Current assets : Temporary Permanent Capital assets $1,190,000 1,380,000
Exam - The real thing Shved Help Save & E Date Wireless has the following assets: Current assets : Temporary Permanent Capital assets $1,190,000 1,380,000 7,95e,eee Total assets $10,520,000 Its operating profit (EBIT) is expected to be $2.9 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 share (EPS) if the firm is perfectly hedged. EPS $1 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 Hedged Capital structure $
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