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Current assets Capital assets $2,100,000 3,600,000 Total assets $5,700,000 . The asset mix is expected to stay at these levels for the whole year, with
Current assets Capital assets $2,100,000 3,600,000 Total assets $5,700,000 . The asset mix is expected to stay at these levels for the whole year, with the exception of 3 months where current assets are expected to drop to $480,000 its operating profit (EBIT) for the year is expected to be $620.000. Its tax rate is 40 percent. Shares are valued at $10 per share. It has a capital structure that is a combination of short-term bank financing and long-term financing (being 50% debt and 50% shareholder's equity). The short-term bank financing has an interest rate of 3 percent. The long-term debt financing has an interest rate of 6 percent (Round the final answers to 2 decimal places.) ences a. Provide the following break-down of the asset mix for 9 months for 3 months Temporary current assets Permanent current assets Capital assets Total Assets b. Assuming the firm is perfectly hedged, provide the following break-down of the financing mix for 9 months for 3 months Short-term financing Long-term debt Shareholder's equity c. Calculate expected EPS If the firm is perfectly hedged. Round your answer to two decimal places. EPS SC d. Recalculate cif short-term rates go to 8 percent while long-term rates remain the same. (Round your answer to two decimal places.) Perfectly Hedged
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