Date Wireless has the following assets:

Current assets: Temporary	$1,100,000
Permanent	1,200,000
Capital assets	7,500,000
Total assets	$9,800,000

Its operating profit (EBIT) is expected to be $2.0 million. Its tax rate is 40 percent. Shares are valued at $25. Capital structure is either short-term financing at 6 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 if it has a capital structure of 40% debt.

c. Recalculate a and b if short-term rates go to 11 percent.