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Parker Investments has EBIT of $19,300, interest expense of $3,010, and preferred dividends of $4,000. If it pays taxes at a rate of 38 %,

Parker Investments has EBIT of $19,300, interest expense of $3,010, and preferred dividends of

$4,000. If it pays taxes at a rate of 38 %, what isParker's degree of financial leverage (DFL) at a base level of EBIT of $19,300?

The degree of financial leverage is ______. (Round to two decimalplaces.)

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