The following is a list of selected information for Arsenal Co. for the fiscal year. Sales in units (millions) Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes Less: Taxes (40%) Net income Earnings per share (30 million shares) 0.38X 1.06X 0.60X 1.10X Forecasted Operations 100 2,000.00 (175.00) $1,825.00 730.00 1,095.00 $36.50 Sales with 40.00% Increase 140 3,080.00 More risky o Not enough information given Less risky (175.00) $2,905.00 1,162.00 1,743.00 $58.10 Unit Change 40 1,080.00 You are an employee for Arsenal Co., and your boss needs help assessing the level of risk associated with the firm's current financial position. Begin by calculating the degree of financial leverage for the change between forecasted operations and the operational increase of 40.00%. (0.00) $1,080.00 (0.00) 648.00 $21.60 Your boss says, "Looking good so far. However, I would like to know how we stack up against our strongest competitor, Hotspurs Co." Compare the degree of operating leverage of Hotspurs Co. with that of Arsenal Co. and then answer the following question. All else being equal, is Arsenal Co. more risky than, less risky than, or as equally risky as Hotspurs Co., considering that the degree of financial leverage for Hotspurs Co. is 1?