Cоming Wаves Inc., а mаnufacturer оf cоmputer hardware, has the following asset base: Temporary Current Assets $2,500,000 Permanent Current Assets $3,000,000 Capital Assets $7,000,000 Total $12,500,000 The company is trying to develop an asset financing plan. Ideally, they would like to incorporate a “perfectly hedged” financing plan, where long-term assets are financed by long-term debt and short-term assets are financed by short-term debt. EBIT next year is expected to be $2,000,000, and the company’s tax rate is 30%. Coming Waves Inc. has 500,000 common shares outstanding. Assume the cost of short term debt is 5% and the cost of long term debt is 8%. Calculate the earnings per share for the company under a perfectly hedged plan. (4 MARKS) Show all calculations. Access Excel Here.