Your Firm's EPS Last Year Was $1

Multiple Choice

Your firm's EPS last year was $1.00. You expect sales to increase by 15% during the coming year. If your firm has a degree of operating leverage equal to 1.25 and a degree of financial leverage equal to 3.50, then what is its expected EPS?

A) $1.66
B) $1.83
C) $1.92
D) $1.74
E) $1.57