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Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower- lender relationships. Assume the

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Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower- lender relationships. Assume the Mitaka Company has a sales volume of 145,000 units at a price of $30 per unit: variable costs are $7 per unit and fixed costs are $2,000,000. Interest expense is $420,000. What is the DCL for this Japanese firm? (Round the final answer to 2 decimal places.) Degree of combined leverage

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