Select the degree of leverage that completes the following sentence.

The ___________________________ is the percentage change in earnings before interest and taxes (EBIT) that results from a given percentage change in sales.

The options are DCL, DOL, or DFL

Expert Analysts Resources (EAR) has provided you with the following information about three companies you are currently evaluating:

	Praxis Corp.	Western Gas Co.	Kumatsu Motors Co.
Degree of Operating Leverage (DOL)	3.0	3.0	5.0
Degree of Financial Leverage (DFL)	3.0	2.7	2.1

According to this information, which company would be considered the riskiest?

Western Gas Co.

Kumatsu Motors Co.

Praxis Corp.