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 32.50% 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) $1.86
B) $2.42
C) $2.40
D) $1.82
E) $2.03