Amy's Pet Supply Warehouse is trying to figure out their degree of combined leverage. You aim to help them out. Solve for DCL with the following provided information:

Fixed operating expenses = $20,800,000

Var. cost ratio = 0.30

Market value of outstanding debt = $10,000,000 (they all have a 9% coupon off of par value)

Common stock outstanding = 200,000 shares

Most recent sales figure for the year = $32,200,000

Marginal tax rate = 40%