Emanuel Rodriguez, CFO of Monterrey Spikes Sports Goods Inc. , has gathered the following information about the company:
2000 2007
Sales $128.4 million 220.0 million
ROA 10% 12%
Net profit margin 6% 7%
Number shares outstanding 5 million 6 million
Rodriguez expects sales in 2008 to grow at the historical compound annual growth of sales from the year 2000 to 2007. For the year 2008, the net profit margin and the number of shares outstanding are expected to remain unchanged from the year 2007. The company's earnings per share (EPS), for the year 2008, is closest to:
A. $2.74.
B. $2.77.
C. $4.69.
