Date Wireless has the following assets:

Current assets : Temporary	$1,010,000
Permanent	1,020,000
Capital assets	7,050,000
Total assets	$9,080,000

Its operating profit (EBIT) is expected to be $1.1 million. Its tax rate is 30 percent. Shares are valued $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.

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

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

Hedged EPS

Capital Structure EPS