King Lyon has the following assets: Current assets Capital assets $2,500,000 7.500.000 Total anst $10.000.000...
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King Lyon has the following assets: Current assets Capital assets $2,500,000 7.500.000 Total anst $10.000.000 During 4 months of the year, current assets drop to $1,000,000 (total assets will then be $8.500,000). Its operating profit (EBIT) expected to be $486,500. Its tax rate is 20 percent. Shares are valued at $17 Its capital structure is short-term financing at 2 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.) EPS $
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