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Consider the following for XYZ Company: Its operating profit (EBIT) is expected to be $1.5 million. Its tax rate is 30 percent. Shares are valued

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Consider the following for XYZ Company: Its operating profit (EBIT) is expected to be $1.5 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. Please submit all calculations on Moodle) a. Calculate expected earnings per share (EPS) if the firm is perfectly hedged. EPS $ b. Calculate expected EPS if it has a capital structure of 30% debt. EPS $

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