Question: 9) Stone Inc. products sell for $180 each. The variable cost of each product is $135, and fixed operating costs are $371,250. Stone Inc. pays

9) Stone Inc. products sell for $180 each. The variable cost of each product is $135, and fixed operating costs are $371,250. Stone Inc. pays $61,875 interest on its outstanding debt each year, and its marginal tax rate is 40 percent. If Stone Inc. expects to sell 11,000 units, what is its degree of total leverage? The firm has no preferred stock

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		4.0x
		7.5x
		2.5x

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