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Taylor Farms Incorporated has the following assets: Current assets Capital assets Total assets $3,340,000 8,200,000 $11,540,000 During 4 months of the year, current assets
Taylor Farms Incorporated has the following assets: Current assets Capital assets Total assets $3,340,000 8,200,000 $11,540,000 During 4 months of the year, current assets drop to $1,700,000 (total assets will then be $9,900,000). Its operating profit (EBIT) is expected to be $500,500. Its tax rate is 20 percent. Shares are valued at $15. Its capital structure is short-term financing at 3 percent and long-term 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.) Please use your Excel submission to show all your detailed calculations that support this answer. EPS $400,400
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