DFL and graphical display of financing plans Walls and Associates has EBIT of $54,000. Interest costs are $16,600, and the firm has 15,300 shares of common stock outstanding Assume a 40% tax rate a. Use the degree of financial leverage (DFL) formula to calculate the DFL for the firm. b. Using a set of EBIT-EPS axes, plot Wells and Associates' financing plan, c. If the firm also has 1,300 shares of preferred stock paying a $6.50 annual dividend per share, what is the DFL? d. Plot the financing plan, including the 1,300 shares of $6.50 preferred stock on the axes used in part (b) e. Brielly discuss the graph of the two financing plans. a. The degree of financial leverage is (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer 4 parts Clear All Check Answer remaining