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Date Wireless has the following assets: Its operating profit (EBIT) is expected to be $21 million. Its tax rate is 30 percent. Shares are valued
Date Wireless has the following assets: Its operating profit (EBIT) is expected to be $21 million. Its tax rate is 30 percent. Shares are valued at $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 ploces.) o. Calculate expected earnings per share (EPS) if the firm is perfectly hedged EPS 5 b. Calculate expected EpS if it has a capital structure of 30% debt. EPS 5 c. Recalculate a and b if short-term rates go to 12 percent
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