The resulting percentage change in earnings per share

Assignment Help Financial Management
Reference no: EM131027075

Use the following information about Rat Race Home Security, Inc. to answer the questions:

Average selling price per unit $301.

Variable cost per unit $190

Units sold 355

Fixed costs $9,726

Interest expense 13,068

Based on the data above, what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc. if they expect operating profit to change 9.0 percent?

Reference no: EM131027075

Questions Cloud

After supply and demand for the japanese yen : The inflation rate in the U.S. is 4%, while the inflation rate in Japan is 1.5%. The current exchange rate for the Japanese yen (¥) is $0.0080. After supply and demand for the Japanese yen has adjusted according to purchasing power parity, the new ex..
What is its net interest margin : Suppose a bank earns $325 million in interest revenue but pays $279 million in interest expense. It also has $624 million in earning assets. What is its net interest margin?
What will be effect of overstating the beginning inventory : Alpha Company's beginning inventory should have been $85,000, but instead, the bookkeeper listed it as $95,000. The manager told the bookkeeper not to "worry" about the mistake, because it would resolve itself in the following year. What will be the ..
What will be the resulting percentage change in ebit : The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $69.14. The variable cost per unit is $25.90, Poseidon Swim has average fixed costs per year of $6,839. Assume that current level sales is 367 u..
The resulting percentage change in earnings per share : Use the following information about Rat Race Home Security,  Average selling price per unit $301. Variable cost per unit $190. Based on the data above, what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc...
In a period of heightened price volatility-what is a buyback : In a period of heightened price volatility, the beta of the market will: What is a buyback? What is a bank?
What is effective annual cost of firms current practice : justo Ltd buys on terms 1.5/10, net 30 days. It does not take discounts, but it typically pays 20 days after the invoice date, instead of waiting until Day30. Justso can borrow from the bank at a rate of 18% per annum. If justso is notaking discounts..
What is the remaining balance that must be paid off : An firm borrowed $153,000 to remodel their office. The load was to be paid back in equal monthly payments over 30 years at 5% interest, compounded monthly. After 7 years, the firm wants to pay off the loan. What is the remaining balance that must be ..
An n-year zero coupon bond with a par value : An n-year zero coupon bond with a par value of $1000 was purchased for $600. A 2n-year $1000 par value bond with annual coupons of $x was purchased for $850. A 3n-year $1000 par value bond with annual coupons of $x was purchased for $P. All three bon..

Reviews

Write a Review

Financial Management Questions & Answers

  Decided to introduce three fruit juice made from blending

CalJuice Company has decided to introduce three fruit juices made from blending two or more concentrates. These juices will be packaged in 2-qt (64-oz) cartons. One carton of pineapple-orange juice requires 8 oz each of pineapple and orange juice con..

  Determine the time period five cash flow

You are considering a cost reduction project for your business. The project will require investment of $1,500,000 in new equipment as an addition to existing equipment. The equipment has shipping and handling charges of $15,000 and will be installed ..

  Is this an ethical dilemma or a basic legal dilemma

Suppose you are the accountant for a small cabinet building shop, and it is the end of January. Your manager, who is also the owner of the business, is in the process of trying to get a loan from the bank. Is this an ethical dilemma or a basic legal ..

  What is the firms ROA

Hahn’s Pianos has a profit margin of 6.95 percent on sales of $24,400,000. Assume the firm has debt of $9,600,000 and total assets of $16,200,000. What is the firm’s ROA?

  Make monthly car payments

To purchase a new car, you borrow $30,000 for 8 years at an interest rate of 12% APR compounded monthly, and you make monthly car payments. How much interest do you pay on the 9th payment? (Hint: First step start with computing the balance of the loa..

  Investor-owned business-what was its net income for period

San Mateo Healthcare had an equity balance of $1.38 million at the beginning of the year. At the end of the year, its equity balance was $1.98 million. Assume that San Mateo is a not-for-profit organization. What was its net income for the period?

  What should the strike price of the put options be

A portfolio manager in charge of a portfolio worth $8 million is concerned that the market might decline rapidly during the next six months and would like to use options on the S&P 100 to provide protection against the portfolio falling below $7 mill..

  Calculate earnings per share

Beckett, Inc., has no debt outstanding and a total market value of $140,000. Earnings before interest and taxes, EBIT, are projected to be $32,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 12 pe..

  What is the external financing needed

For 2012, the income statement of Precious Metals Processing reported net sales of $17,300, EBIT of $3,450, taxable income of $2,770 and net income of $1,830. The profit margin and the dividend payout ratio are held constant. Net working capital and ..

  How much interest rate will he earn after

Tom deposits $100 in a bank; nominal interest rate is 10%. How much interest rate will he earn after

  Expected return on the market-risk-free rate

A stock has a beta of 1.05, the expected return on the market is 12 percent, and the risk-free rate is 4 percent. What must the expected return on this stock be? (Show your work.)

  What is the required rate of return for industries

Jackson 5 industries decided to pay a $4 dividend in one year and the stock is currently trading at $22.18. The firm expects dividends to grow at 20% for the next three years it pays dividends. What is the required rate of return for jackson 5 indust..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd