King Lyon has the following assets:

Current assets $2,500,000

Capital assets 7,500,000

Total assets $10,000,000

During 4 months of the year, current assets drop to $1,000,000 (total assets will then be $8,500,000). Its operating profit (EBIT) is expected to be $486,500. Its tax rate is 20 percent. Shares are valued at $17. Its capital structure is shortterm financing at 2 percent and longterm financing of 40 percent equity, 60 percent debt at 4 percent.

a. Calculate expected EPS if the firm is perfectly hedged. (Do not round intermediate calculations and round your final answer to 2 decimal places.) EPS $