Phu Lighters is doing its annual budget. It's expecting to start next year with the following mix of assets:

Current assets	$2,100,000
Capital assets	3,600,000
Total assets	$5,700,000

The asset mix is expected to stay at these levels for the whole year, with the exception of 3 months where current assets are expected to drop to $480,000. Its operating profit (EBIT) for the year is expected to be $620,000. Its tax rate is 40 percent. Shares are valued at $10. It has a capital structure that is a combination of short-term bank financing and long-term financing (being 50% debt and 50% shareholder's equity). The short-term bank financing has an interest rate of 3 percent. The long-term debt financing has an interest rate of 6 percent. (Round the final answers to 2 decimal places.)

a. Provide the following break-down of the asset mix:

	for 9 months	for 3 months
Temporary current assets
Permanent current assets
Capital assets
Total Assets

b. Provide the following break-down of the financing mix:

	for 9 months	for 3 months
Short-term financing
Long-term debt
Shareholder's equity

c. Calculate expected EPS if the firm is perfectly hedged. (Round your answer to two decimal places.)

EPS $

d. Recalculate c if short-term rates go to 8 percent while long-term rates remain the same. (Round your answer to two decimal places.)

	EPS
Perfectly Hedged	$