Boxer Box Kite Company has a Degree of Financial Leverage (DFL) of 1.32. If relationships observed in the past are expected to continue to hold, we can conclude that.

• A.A 1% change in the company's sales would be accompanied by a 1.32% change in net income.
• B.A 1% change in the company's net income would be accompanied by a 1.32% change in EBIT.
• C.A 1% change in the company's EBIT would be accompanied by a 1.32% change in net income.
• D.A 1.32% change in the company's net income would be accompanied by a 1% change in sales.
• E.A 1.32% change in the company's financial leverage would accompany a 1.32% change in EBIT