A firm's assets are finance with 60 percent debt and 40 percent common equity. As a result, we know that the firm must have:

a. a degree of equity leverage (DEL) that is greater than 1.0.

b. paid common stock dividends last year.

c. a degree of financial leverage (DFL) that is greater than 1.0.

d. fixed operating costs.

e. a degree of operating leverage (DOL) that is greater than 1.0.