The Quick Company Expects Its Sales to Increase by 50

question 13

Multiple Choice

The Quick Company expects its sales to increase by 50% in the coming year. 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) $7.86
• B) $7.47
• C) $9.15
• D) $8.27
• E) $8.71

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