Sandra company:

Current assets: Temporary	$1,200,000
Permanent	1,400,000
Capital assets	8,000,000
Total assets	$10,600,000

Its operating profit (EBIT) is expected to be $3.0 million. Its tax rate is 40 percent. Shares are valued at $25. Capital structure is either short-term financing at 6 percent or equity. There is no long-term debt. (Round the final answers to 2 decimal places.)

a. Calculate expected earnings per share (EPS) if the firm is perfectly hedged.

EPS = $ ______

b. Calculate expected EPS if it has a capital structure of 40% debt.

EPS = $ ______