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)$7.47
B)$7.86
C)$8.27
D)$8.71
E)$9.15

Question

Quizplus · Accepted Answer

The Answer of 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)$7.47
B)$7.86
C)$8.27
D)$8.71
E)$9.15

The Quick Company Expects Its Sales to Increase by 50