Lyceum Co Reported Profit of $8

Lyceum Co. reported profit of $8.3 million, interest expense of $.5 million and they are in a 30% tax rate bracket. Their average total assets are $65.8 million and average shareholders' equity is $48.6 million. What is Lyceum's financial leverage advantage or disadvantage?

A) 3.7%
B) 3.9%
C) 4.0%
D) 4.7%