Date Wireless has the following assets:

Current assets : Temporary$1,140,000

Permanent1,280,000

Capital assets7,700,000

Total assets$10,120,000

Its operating profit (EBIT) is expected to be $2.4 million. Its tax rate is 40 percent. Shares are valued $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.

EPS? $

b.Calculate expected EPS it has a capital structure of 40% debt.

EPS ? $

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

EPSHedged ? $

Capital structure ? $