Executives of the Donut Shop have determined that the companys DOL is 3X and its DFL is

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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?

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CFIN

ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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