A company with $250 million of earnings before interest and taxes is buying back stock and issuing additional debt. The current and proposed capital structures are the following:

in millions	Current	Proposed
Accounts payable	$200	$200
Bonds (8 percent coupon)	$500	$800
Shareholders equity	$1,000	$700
Total liabilities and equity	$1,700	$1,700

If the company adopts the proposed capital structure, its degree of financial leverage will most likely: