JKL Corporation has the following data for the year 2023:

Total Debt: $300,000

Total Equity: $700,000

Earnings Before Interest and Taxes (EBIT): $80,000

Interest Expense: $20,000

Requirements:

Calculate the debt-to-equity ratio.

Determine the interest coverage ratio.

Compute the degree of financial leverage (DFL).

Assess the company's financial risk.

Evaluate the impact of leverage on earnings.