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may neve ave to pay the short-term loan in time, which could lead to bankruptcy. 11) BC Logging Corporation has the following assets: Current assets............................... $1,750,000 Capital Assets........................ BELEHRER 3,000,000 Total.............. . .**.***. $4,750,000 During 3 months of the year, current assets drop to $400,000. Its operating profit (EBIT) is expected to be $620,000. Its tax rate is 40 percent. Shares are valued at $10. Its capital structure is short-term financing at 3 percent and long-term financing of 50 percent equity, 50 percent debt at 6 percent. a) Calculate expected EPS if the firm is perfectly hedged. 1 b) Calculate expected EPS if BC Logging Corporation is a more aggressive with its capital structure and finances all current assets and 20 percent of its capital assets with short-term loans