Quick Launch Rocket Company, a Satellite Launching Firm, Expects Its

question 46

Multiple Choice

Quick Launch Rocket Company, a satellite launching firm, expects its sales to increase by 50 percent in the coming year as a result of NASA's recent problems with the space shuttle.The firm's current EPS is $3.25.Its degree of operating leverage is 1.6, while its degree of financial leverage is 2.1.What is the firm's projected EPS for the coming year using the DTL approach?

• A)$3.25
• B)$5.46
• C)$10.92
• D)$8.71
• E)$19.63

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