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? Donotroundintermediatecalculations.
A. $1.86
B. $2.42
C. $2.40
D. $1.82
E. $2.03
Answer: B
Business
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