Hollaback Girl Company has the following assets Current assets $2,680,000 Capital assets 7,650,000 Total assets $10,330,000 During 4 months of the year, current assets drop to $1,150,000 (total assets will then be $8,800,000) Its operating profit (EBIT) is expected to be $489,500 Its tax rate is 30...

To calculate the expected EPS Earnings per Share for Hollaback Girl Company we need to consider the ...

Hollaback Girl Company has the following assets: Current assets $2,680,000 Capital assets 7,650,000 Total assets $10,330,000 During

Fantastic news! We've Found the answer you've been seeking!

Question:

Hollaback Girl Company has the following assets:


Current assets	$2,680,000
Capital assets	7,650,000

Total assets	$10,330,000

During 4 months of the year, current assets drop to $1,150,000 (total assets will then be $8,800,000). Its operating profit (EBIT) is expected to be $489,500. Its tax rate is 30 percent. Shares are valued at $20. Its capital structure is short‐term financing at 2 percent and long‐term financing of 30 percent equity, 70 percent debt at 4 percent.

a. Calculate expected EPS if the firm is perfectly hedged. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

EPS $ _____