ControlDate Wireless has the following assets:

Current assets: Temporary $$1,130,000$

Permanent $1,260,000$

Capital assets $7,650,000$

Total assets $$10,040,000$

Its operating profit $($EBIT$)$ is expected to be $$2\mathrm{.}3$ million. Its tax rate is $30$ percent. Shares are valued at $$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 $

b$.$ Calculate expected EPS if it has a capital structure of $30\%$ debt.

EPS $

c$.$ Recalculate a and b if short$-$term rates go to $12$ percent.

EPS

Hedged $

Capital structure $