A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 40% of sales, while the fixed cost will be $450,000. The first year's sales estimates are $1,250,000. The cost to start up this restaurant will be $2,000,000. Two financing alternatives are being considered: (a) 50% equity financing and 50% debt at 12%, or (b) all-equity financing. Common stock can be sold at $5 per share. What is the DOL?

A. 2.50x

B. 1.67x

C. 3.50x

D. 2.00x