6. The computation and interpretation of the degree of financial leverage (DFL) It is December 31. Last year, Campbell Construction had sales of $120,000,000, and it forecasts that next year's sales will be $108,000,000. Its fixed costs have been-and are expected to continue to be $48,000,000, and its variable cost ratio is 21.00%. Campbell's capital structure consists of a $15 million bank loan, on which it pays an interest rate of 8%, and 750,000 shares of common equity. The company's profits are taxinal rate of 40%. Given this data, complete the following sentences: Note: For these computations, round each value to two decimal places. - The company's percentage change in EBIT is - The percentage change in Campbell's earnings per share (EPS) is - The degree of financial leverage (DFL) at $108,000,000 is Consider the following statement about DFL, and indicate whether or not it is correct. Assume that a firm's fixed capital costs remain constant across a range of operating profit (EBIT) values. The firm's DFL will vary across the range of EBIT values. False True