I think the key "trap" here is that the altitude of the satellite (above the surface of the Earth) is different from the radius of the orbit (centered on the center of the Earth).
The question seems to imply that the quantity being halved is the altitude (above the surface of the Earth) rather than the full radius of the orbit.
The orbital velocity (as I'm guessing has been covered in your class) can be expressed in terms of the radius of the orbit and G and M the standard gravitational parameters (this is assuming the satellite's mass is negligible compared to the mass of the Earth): v ~ sqrt(GM / r) (where 'sqrt' is square root).
I hope this gets you closer to answering the question :-)