What is EBIT-EPS analysis? What is the indifference curve? How is risk factored into the EBIT-EPS analysis? What are the “basic short comings” of EBIT’s analyses?

FIN 419 (Finance for Decision Making)

Week 4

Week 4 DQ 1

What is investment banking? How would the investment banker assist an organization in going public? As a CFO, what information would you need to select an investment banker?

Week 4 DQ 2

What is the difference between operating and financial leverage? What is the importance of assessing operating vs. financial leverage?

Week 4 DQ 3

What are the risks of having an excessive amount of financial leverage in an organization?

What is the degree of total leverage?

Week 4 DQ 4

What is EBIT-EPS analysis? What is the indifference curve? How is risk factored into the EBIT-EPS analysis? What are the “basic short comings” of EBIT’s analyses?

Week 4 Assignments:

Week 4 – Assignments from the Readings, Chapter 14: Problem 14.9, Problem 14.16, Problem 15.9, Problem 14.9, Problem 14.16, Problem 15.9

·         LT Assignments Working Capital Strategies Wal-Mart 7 Slides

·         Learning Team: Working Capital Strategies(1550+ Words)

·         Scott Equipment Organization Paper

·         Week 4 Scott Equipment Solution

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