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Sample quetions for final Mailings Review View References Ap Aa v AaBbCcDc AaBbCcDdE AaBb AabCcDdte AabbCcDdEe D. A Normal No Spacing Heading 1 Heading 2

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Sample quetions for final Mailings Review View References Ap Aa v AaBbCcDc AaBbCcDdE AaBb AabCcDdte AabbCcDdEe D. A Normal No Spacing Heading 1 Heading 2 Tile Dr. Kiseok Nam FIN360 Quinnipiac University 10. Maxvill Motors has annual sales of $15,000. Its variable costs equal 60 percent of its sales, and its fixed costs equal $3,000. If the company's sales increase 10 percent, what will be the percentage increase in the company's earnings before interest and taxes (EBIT)? 11. Your firm's EPS last year was $1.00. You expect sales to increase by 15 percent during the coming year. If your firm has a degree of operating leverage equal to 2.25 and a degree of financial leverage equal to 3.35, then what is its expected EPS? [Levered/Unlevered beta & Capital Structure] Consider the following information about the TSP Corp: Current Debt/Equity Ratio: 0.50 Current Beta (B): 1.50 Tax rate: 50% Average Market Retum: 15% 3-month Treasury bill rate: 7% ish (united States) Fecus MacBook Air

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