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The company incurs costs of $23.16 million regardless of the output level. It sells 6.65 million units of its product at the price of $8.74,
The company incurs costs of $23.16 million regardless of the output level. It sells 6.65 million units of its product at the price of $8.74, and its variable costs per unit are $2.64. The company has $58 million of debt with an annual interest rate of 5.44%. What is the degree of financial leverage at the current level of sales? Round to two decimals.
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