Your (all equity) firm sells 35,000,000 units at $2.30 per unit, the variable cost per unit...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Your (all equity) firm sells 35,000,000 units at $2.30 per unit, the variable cost per unit is $1.84, and fixed costs are $6,500,000, giving your firm a DOL of 1.6771. The firm faces a tax rate of 40 percent and has 900,000 shares outstanding. Sales are expected to increase by 18 percent during the coming year. Given this information, and assuming that there will be no change in total assets or the number of shares outstanding, calculate the expected EPS for the coming year. Your (all equity) firm sells 35,000,000 units at $2.30 per unit, the variable cost per unit is $1.84, and fixed costs are $6,500,000, giving your firm a DOL of 1.6771. The firm faces a tax rate of 40 percent and has 900,000 shares outstanding. Sales are expected to increase by 18 percent during the coming year. Given this information, and assuming that there will be no change in total assets or the number of shares outstanding, calculate the expected EPS for the coming year.
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Lexis Corp. Bhd telah memperolehi 80% kepentingan dalam New Global Sdn. Bhd. pada 31 Disember 2018 dengan balasan dalam bentuk tunai sebanyak RM240,000. Pada tarikh tersebut baki rizab modal ialah...
-
Assume that your firm had net income (earnings) this last year of $9,465,765.00 and had 2,280,907 common shares outstanding with a book value of $32 per share. Also assume that the firm sold...
-
This case study on project evaluation is applicable for beginning courses in corporate finance or finance strategy. Two alternative investment options are available to evaluate. Challenges are...
-
Ethanol reacts with sodium and forms two products which are Options: 1) Sodium ethanoate and hydrogen 2) Sodium ethanoate and oxygen 3) Sodium ethoxide and hydrogen 4) Sodium ethoxide and oxygen
-
There are 80 students enrolled in statistics. (a) You and 11 others earned the same score. What percent of the class received your score? (b) Forty percent of the class received a grade of C. How...
-
Read The Impact of Capacity-Building Programs on Nonprofits:A Random Assignment Evaluation. What five critical areas did the federal governments Compassion Capital Fund (CCF) Demonstration Program...
-
What is the net present value of the investment for the computer? a. $22,459 b. $2,540 c. $(2,540) d. $(5,000) The Whitton Company has an opportunity to buy a computer now for \($25,000\) that will...
-
For each of the following situations, explain how risk of material misstatement should be assessed and what effect that assessment will have on detection risk. a. Johnson, Inc., is a fast- growing...
-
Exercise 11-3 (Algo) Make or Buy Decision [LO11-3] Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for...
-
Find an explicit description of the null space of matrix A by listing vectors that span the null space. 1-2 -4 -2 A = 2. O A. O B. 4. -2 -5 -2 1. 1 OC. O D. 4. -2 2 20 6. 2N 2. 2. 5. 1, 2. 1,
-
Officer Mitchell met with a confidential informant on June 16. She then prepared the following affidavit and, on June 19, presented it to a magistrate: "I have been a member of the Police Department...
-
Describe the level of consumer involvement in the unplanned decision-making process (unplanned purchase behavior). One of the levels of consumer involvement is indicated by the efforts made by...
-
Roller Coaster he 500kg roller coaster shown in the figure starts at point A with speed of 2.0 m/s. The heights of the different points along the path are shown on the figure. 2 1 point Ignoring...
-
A 7 5 kg pilot is flying the F - 1 8 fighter jet in a vertical loop with a constant speed of 8 5 0 km / h . The centripetal acceleration of the plane is 9 . 0 g ' s . Determine the radius of the loop.
-
Three point charges are located on the corners of a right triangle as shown in the Figure, given: 91 (C) 292 92 (C) 93 (C) -75.5 59.7 a (m) 3.00 b (m) 4.00 What is the y-component (unit in N) of the...
-
The full episode is Mythbusters, Season 6, Episode "Alcohol Myths"Links to an external site. and available on a number of streaming platforms. However, one of the experiments can be found on YouTube....
-
Write a paper detailing a geographic information system (GIS) of your own design that would utilize data in an original manner.
-
What will be the value of AHS' TIE during 2007? a. 2.75 b. 2.85 c. 2.95 d. 3.05 AHS INC. 2007 Income Statement (S in millions) Net sales S 9625 Cost of goods sold 5225 Depreciation 1890 Earnings...
-
What will be the appropriate value of AHS' inventory turnover ratio in 2007? a. 4.56 b. 4.78 c. 5.32 d. 5.90 AHS INC. 2007 Income Statement (S in millions) Net sales S 9625 Cost of goods sold 5225...
-
If a firm had a D/A ratio of 0.4, which of the following values would be equal to its D/E ratio? a. 4/10 b. 2/3 c. 0.4/1.4 d. 10/4
Study smarter with the SolutionInn App