16 - 15 Debbie's Sod Farm ( DSF ) expects its EBIT to be $2 250 this year . DSP's marginal tax rate is 40 percent it must pay $1 090 in interest this year and it has 500 shares of common stock outstanding . DSF has no preferred stock ( 2 ) Compute the EPS that DSF expects to generate this year ( b ) What is DSP's degree of financial leverage ( DEL . )