Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of brick for the homebuilding industry. Their financial information is as follows:

	Sinclair			Boswell
Capital Structure
Debt @ 11%	$	900,000			0
Common stock, $10 per share		600,000		$	1,500,000
Total	$	1,500,000		$	1,500,000
Common shares		60,000			150,000
Operating plan
Sales (55,000 units at $20 each)	$	1,100,000		$	1,100,000
Variable costs		880,000			550,000
Fixed costs		0			305,000
Earnings before interest and taxes (EBIT)	$	220,000		$	245,000

The variable costs for Sinclair are $16 per unit compared to $10 per unit for Boswell. a. If you combine Sinclairs capital structure with Boswells operating plan, what is the degree of combined leverage? (Round your answer to 2 decimal places.)

Degree of Combined Leverage______