Executives of the donut shop have determined that the


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?

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Finance Basics: Executives of the donut shop have determined that the
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