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Cox Corporation has the following assets: Current assets $3,700,000 Capital assets 8,500,000 Total assets $12,200,000

Cox Corporation has the following assets:\ \ \ \ \ Current assets $3,700,000 \ Capital assets 8,500,000 \ \ Total assets $12,200,000 \ \ \ \ During 4 months of the year, current assets drop to $2,000,000 (total assets will then be $10,500,000). Its operating profit (EBIT) is expected to be $506,500. Its tax rate is 20 percent. Shares are valued at $25. Its capital structure is shortterm financing at 3 percent and longterm financing of 40 percent equity, 60 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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