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Huppe Furniture Company forecast 2021 Sales of $4,000,000 and EBIT of $1,000,000 and will incur $300,000 of interest expense on its current debt. Dividends of

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Huppe Furniture Company forecast 2021 Sales of $4,000,000 and EBIT of $1,000,000 and will incur $300,000 of interest expense on its current debt. Dividends of $275,000 will be paid to the common shareholders. The companies marginal tax rate is 35%. What is Huppe's degree of financial leverage? 1.43 0.70 2.33 None of the above

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