How will donut shop’s eps be affected if its amount of ebit

Assignment Help Finance Basics
Reference no: EM131138757

Executives of the Donut Shop have determined that the company’s DOL is 3X and its DFL is 6X. According to this information, Executives of the Donut Shop have 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: EM131138757

Questions Cloud

Explain reasons for believing that bible is inspired by god : Name and explain 3-4 reasons for believing that the Bible is inspired by God, -Include at least 2 objections to the Bible's inspiration.
Adel company debits supplies expense for all purchases : Adel Company debits Supplies Expense for all purchases of supplies and credits Rent Revenue for all advanced rentals. For each type of adjustment, give the adjusting entry.
Assignment is to investigate smartphone and social media : The purpose of this assignment is to investigate smartphone and social media use in healthcare and to apply professional, ethical, and legal principles to the appropriate use in healthcare versus personal technology in about 3 pages if possible i wil..
What is the net realizable value of the accounts receivable : After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $430,000 and Allowance for Doubtful Accounts has a balance of $30,000. What is the net realizable value of the accounts receivable?
How will donut shop’s eps be affected if its amount of ebit : Executives of the Donut Shop have 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?
Why is it possible to prepare financial statements : Why is it possible to prepare financial statements directly from an adjusted trial balance?
Wine was lethal without wasting lot of arsenic : In the comedy Arsenic and Old Lace, two elderly sisters poisoned their gentlemen roomers with elderberry wine that contained arsenic. They got no help from their nephew, played by Cary Grant; but then, he knew nothing of median effective doses or dos..
Explain how you reached your answer : A company needs to estimate its ending inventory. Using the data below, compute The Company’s estimated cost of ending inventory for the month of April. Explain how you reached your answer.Beginning inventory May 1 ........ $ 2,000Purchases for May ...
Evaluate the management of inventories and resources : Compare and contrast the four (4) different types of layouts found with each company; explain the importance of the layouts to the company's manufacturing or service operations.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the net present value for this project

The tax rate is 33 percent and the required return for the project is 15 percent. What is the net present value for this project?

  What is the treynor measure of the portfolio

A portfolio P generates an annual return of 16%, a beta of .8, and a standard deviation of 25%. The market index return is 15% and has a standard deviation of 21%. T-bill rate is 3%.

  The average checking account balance

The average checking account balance.

  A firm has net working capital of 2715 net fixed assets of

a firm has net working capital of 2715 net fixed assets of 22407 sales of 31350 and current liabilities of 3908. how

  Assume that you recently graduated with a degree in finance

1. discuss why financial markets are important to a healthy economy and how they contribute to economic growth.2.

  Understanding municipal bonds

Illustrate out municipal bonds? We are comparing the equivalent tax-free rate of two investments: 1) A taxable corporate bond that is at a rate of 10%, with a marginal tax of 30%

  The installments will increase by 5 percent per year

Suppose two athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal installments. In the other case, we're told that the $80 million will be paid in 10 installments, but the installments ..

  An asset used in a 4-year project falls in the 5-year macrs

an asset used in a 4-year project falls in the 5-year macrs class macrs table for tax purposes. the asset has an

  What is the portfolio weight of stock d

You own a portfolio that consists of $18,000 in stock A, $4,600 in stock B, $13,000 in stock C, and $5,500 in stock D. What is the portfolio weight of stock D?

  Determining shareholder rights plan

Apple Company is one of the best-known global technology companies. Who are Apple's primary consumers? Current and potential competitors? Suppliers?

  The central issue underlying the study of leverage is

the central issue underlying the study of leverage is whether or not it influences stock price and whether theres an

  What is the wacc of your selected company

Select a company and determine the costs of its various types of capital: Long Term debt, Preferred Stock and Common Stock. What is the WACC of your selected company?

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