Quick Launch Rocket Company, Expects Its Sales to Increase by 50

question 62

Multiple Choice

Quick Launch Rocket Company, expects its sales to increase by 50 percent in the coming year. The firm's current earnings per share (EPS) is $3.25. Its degree of operating leverage is 1.6 and its degree of financial leverage is 2.1. What is the firm's projected EPS for the coming year?

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

---

Definitions:

Scientific Method

A systematic process for research and investigation that involves the observation, measurement, and experiment, and the formulation, testing, and modification of hypotheses.

Critical Thinking

The goal of critically examining and assessing a matter to develop an opinion.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Correlations

Statistical measures that indicate the extent to which two or more variables fluctuate together.