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Twilight Jeweines inc, a goid and precious metal corporation speciaizes in the exploration and manufacturing of jeweiries for special occassions The company currenty has $9,500,000

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Twilight Jeweines inc, a goid and precious metal corporation speciaizes in the exploration and manufacturing of jeweiries for special occassions The company currenty has $9,500,000 in Total Assets. Of that amount. Capital Assets are worth $5,500,000 and current assets are worth $4.000.000 Current assets remain at that level for 7 months, They drop to $2,100,000 for 5 months. The following additional information has been provided. > Earnings Before Interest and Taxes (EBIT) are $1,100,000 > The tax tate is 40 percent. 70 percent of any long-term financing needed is soutced through long-lerm debt while the remaining 30 percent is sourced in the form of sharehoiders equity. > interest rates on short-tem debt are 8 percent. 3 Interest rates on long-term debt ate 12 percent (Note this is the interest rate on the long-term debt part of long-lerm tinancing Assume no interest rate costs on the equity part of long-term financing.) Required: 2. Provide the following break-down of the asset mix.T (a) temporary assets (b) permanent assets and (c) capital assets b. Assuming the firm is pertectly nedged. provide the following break-down of the financing mix: c. Calculme interent expense for shor-term debt and for long-term debt d. Calculate expected EPS it the firm is perfectly hedged and the share price is $5 per ahares. Provide the following break-down of the asset mx.T (a) temporary assets, (b) permanent assets and (c) capital assets b. Assuming the firm is perfectly hedged. provide the following break-down of the financing mix. c. Caiculate inlerest expense for short-term dett and for long-term debt d. Calculale expected EPS if the fim is perfectly hedged and the shure price is $5 per shares

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