EBIT stands for Earnings before tax and EPS stand for Earnings Per Share. The EBIT/EPS model is used to control the effect of various sources of funds on EPS. It helps to determine the ideal level of debt and equity in the capital structure.
Advantages of EBIT-EPS model
1) EBIT-EPS model allows maximise the earnings per share for any given value of earnings before interest and taxes. This model help us to select the best financial plan.
2) It gives comparative analysis which analysis the specific product, project, department and market.
3) The management of a company is able to know the capital structure which has been targeted to determine the target capital structure in order to maximise the EPS.
Disadvantages of EBIT-EPS model
1) The EBIT-EPS does not take into account the risk which is associated with the financing of the debt.
2) The higher complexity of the calculations in the more alternative financing plans.
3) It does not take into account the limitations of raising different sources of financing.
2. In class, we discussed several ways that firms can secure financing for their strategies. Discuss...
This is an open note, open material exam. Cite any works used. You are not allowed to work with others in the completion of this exam. It is due May 2 by 5:00 pm. Discuss the Boston Consultant Group Matrix. How is it related to the Product Lifecycle? Identify the axis and the cell assignments. Using Coke-a-Cola (the company as a whole which includes multiple brands). Develop their BCG matrix for their beverage products. Provide strategic recommendations for their beverage...
Describe three of the several ways drugs can be administered into the body. Discuss the advantages and disadvantages of each of them with respect to toxicity, side effects, and how drugs exit the body.
Discuss the three common pricing strategies. How do firms employ each strategy? What are the main advantages and disadvantages of using such strategies?
Quicksort has several optimization strategies that we discussed in class. Select a valid one from the list below. Always divide the input exactly in half in the first step, then adjust afterwards. Use recursion for larger files of similar data ranges. Use insertion sort for small partitions. Use merge sort for sub-partitions.
QUESTION 6 Consider the Hotelling model of the competition between two firms discussed in class. Select all that apply. a.If both firms are localized in position 1/2 (i.e., center of the line), neither firm has incentives to deviate and move to a different position. D. If Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line. C....
1. List and discuss two of the alternative manufacturing strategies. 2. Firms also face several trade-offs when deciding upon a location. E.g. Locating facilities close to consumers improves response times and reduces transportation costs. What other costs increase as a result?
In class we discussed four different methods of peptide fragmentation that can be used for MS/MS-based sequencing. What are the four different methods and what types of ions do each usually produce?
Consider the Hotelling model of the competition between two firms discussed in class. Select all that apply a. If both firms are localized in position 1/2G.e., center of the line), neither firm has incentives to deviate and move to a different position D. In the Nash Equilibrium in pure strategies firms will localize together anywhere along the line. C. lf Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then...
1. What is a receivables float? 2. What is a payables float? 3. Name three ways to shorten the receivables cycle. 4. GIve one example of receivables fraud. 5. Name at least two different types of inventory valuation methods. Discuss the advantages and disadvantages of each method. 6. A controller must consider the many factors to assist in the determination of capital asset expenditures. Why is this planning important? Name two different account methods that might be used in the...
2. In the class, we discussed many software design patterns. There are several types of design patterns. One of them is component patterns. Describe any one design pattern in software component design. Then give a real-world example to explain how such a design pattern can be applied. Your example must NOT be from lecture notes or homework questions.