Define how will donut shops eps be affected

Assignment Help Financial Econometrics
Reference no: EM13334359

Executives of the Donut Shop have been determined that the company's DOL is 3X and its DFL is 6X. According to this information, how will Donut Shop's EPS be affected if its amount of EBIT turns out to be 4 percent higher than expected?

Reference no: EM13334359

Questions Cloud

Explain the sublimation of co2 from solid to gas : Which one of the following processes involves a decrease in entropy. A) the decomposition of NH3(g) to H2(g) and N2(g B) The condensation of steam to liquid water C) The sublimation of CO2 from solid to gas D) The evaporation of ethanol E) The dis..
What is the acceleration of the baseball : As a baseball is being thrown, it goes from 0.0 to 40.0 m/s in 0.17 s. What is the acceleration of the baseball
Explain the wavelength required to excite the molecule : Assume the H atom oscillates toward and away from the I atom and that force constant of the HI bond is 314 N m^-1 , bond is 161pm. calculate (a) vibrational frequency of the molecule and (B) the wavelength required to excite the molecule into vibr..
Consider the communications techniques : Consider the communications techniques’ including managing one-on-one communication.work is to apply effective communications techniques in a simulated interaction, using appropriate tone and grammar. Compose a 200-300 word memo in Microsoft Word to ..
Define how will donut shops eps be affected : According to this information, how will Donut Shop's EPS be affected if its amount of EBIT turns out to be 4 percent higher than expected
How far has the cruiser recoiled by the time : A 15,000?metric ton battle cruiser at rest fires a salvo of six 8?inch shells at a 45o angle with a muzzle velocity of 350 m/s. how far has the cruiser recoiled by the time its salvo hits their target
Evaluate the frequency of radiation that can induce : Calculate the frequency of radiation that can induce a transition between the highest occupied and lowest unoccupied levels.
Determine how much will company pay for a share today : The company has just paid a dividend of $4 per share and has announced that it will increase the dividend by $5 per share for each of the next four years, and then never pay another dividend.
Calculate the dead space volume : The partial pressure of CO2, in the expired air is 25 mm Hg and in the alveolar air it is 39 mm Hg. For an expired volume of 550ml, calculate the dead space volume

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Find what is the companys new required rate of return

Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return

  Determine what is the value of the stock today

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of it's earnings. However, investors expect Simpkins to begin paying and dividends, with the first dividend of $.50 coming 3 years from today.

  Calculate the value of the bond for the rate of return

A company has issued a bond with the following characteristics: Principal: $1000 Time to Maturity: 20 years Coupon Rate: 8%, compounded semiannually. semiannual payments.

  Determine how much would the company have to invest today

Assume that Window Printing, Inc. decides to wait six (3) months to make the investment due to an unexpected cash expenditure but still needs the new printing press in six (6) months.

  Determine what is the length of the annuity time period

You are considering an annuity which costs $74,100 today. The annuity pays $6,000 a year. The rate of return is 5 percent. What is the length of the annuity time period

  How much will be in the account after 15 years

It is now January 1. You plan to make a total of 5 deposits of $600 each, one every 6 months, with the first payment being made today. The bank pays a nominal interest rate of 10% but uses semiannual compounding.

  What would be expected the nominal rate of interest to be

What would you expect the nominal rate of interest to be if the real rate is 4 percent and the expected inflation rate is 7 percent

  What is the total asset turnover and the capital intensity

Silas 4-Wheeler, Inc., has an ROE of 18.05 percent, equity multiplier of 1.60, and a profit margin of 18.80 percent. What is the total asset turnover and the capital intensity

  How many shares of stock will outdoor living need to sell

The underwriters estimate that the firm could sell additional shares of stock at $14.50 a share with a 7.5 percent underwriting spread. This would be a firm commitment underwriting.

  Find how many common shares are currently outstanding

Henderson Industries has $500 million of common equity; its stock price is $44 per share; and its Market Value Added (MVA) is $50 million. How many common shares are currently outstanding

  What would advice the firm regarding the proposed change

Days sales in inventory will decline from 100 to 45 days and sales will be offset by most of the additional costs of accounts payable associated with increased purchases.

  What is amount of the margin call for maintenance margin

You own 300 shares of stock which dropped drastically in value today down to $13.50 a share. You have a margin loan of $2,880. What is the amount of your margin call if the maintenance margin is 40 percent

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