Phu Lighters is doing its annual budget. It's expecting to start next year with the following mix of assets: Current assets Capital assets $2,100,000 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 per share. 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. Assuming the firm is perfectly hedged, 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 $0 d. Recalculate cif short-term rates go to 8 percent while long-term rates remain the same. (Round your answer to two decimal places.) FPS Perfectly Hedged Phu Lighters is doing its annual budget. It's expecting to start next year with the following mix of assets: Current assets Capital assets $2,100,000 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 per share. 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. Assuming the firm is perfectly hedged, 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 $0 d. Recalculate cif short-term rates go to 8 percent while long-term rates remain the same. (Round your answer to two decimal places.) FPS Perfectly Hedged