Thanks for the feedback. Agreed my original calculations were...

Thanks for the feedback.

Agreed my original calculations were wrong as I hadn't included the tax benefit on the interest (NPAT increases by 30% of the interest cost).

Grasshopper also raised that my interest on borrowings of 5% was too high compared to DMP's current interest on borrowings which works out to approx 1.5% per annum. It makes you wonder where they are borrowing their money for 1.5%. You wouldn't think it is in Australia, as there would be no margin in it for Australian banks. If the money is borrowed from overseas, then perhaps Dominos then has a currency risk on the loan?

If Aussie companies can borrow money at 1.5% per annum, you would think they would all be gearing up big time and doing buy backs.