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2. Question #2 Hollaback Girl Company has the following assets: Current assets Capital assets $2,800,000 7,750,000 Total assets $10,550,000 During 4 months of the year,

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2. Question #2 Hollaback Girl Company has the following assets: Current assets Capital assets $2,800,000 7,750,000 Total assets $10,550,000 During 4 months of the year, current assets drop to $1,250,000 (total assets will then be $9,000,000). Its operating profit (EBIT) is expected to be $491,500. Its tax rate is 30 percent. Shares are valued at $18. Its capital structure is short-term financing at 3 percent and long-term financing of 30 percent equity, 70 percent debt at 5 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 $

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