Alasco Inc.'s fixed operating costs are $20.8 million and its variable cost ratio is 0.30. The firm has $10 million in bonds outstanding with a coupon interest rate of 9%. Revenues are $32.2 million. Compute Alasco's degree of total leverage (DTL).

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The Answer of Alasco Inc.'s fixed operating costs are $20.8 million and its variable cost ratio is 0.30. The firm has $10 million in bonds outstanding with a coupon interest rate of 9%. Revenues are $32.2 million. Compute Alasco's degree of total leverage (DTL).