A firm has the following information for the last two years. Calculate its degree of financial leverage.

	This year	Last year
Sales	$1,500,000	$1,300,000
Operating costs	$900,000	$800,000
Net income	$150,000	$120,000
Number of shares outstanding	50,000	50,000

a. 1.25

b. 6.25

c. 1.04

d. 0.21

e. insufficient information to calculate DOL