Assignment: Chapter 16 Financial Planning and Control 7. Financial leverage The following is a list of selected information for Newcastle Co. for the fiscal year. You are an employee for Newcastle Co 4 and your boss needs help assessing the level of risk associated with the firm's current financial positon, Begin by calculating the degree of financial leverage for the change between forecasted operations and the operational increase of 40.00%. 0.60x 1.05x 0.38x Assignment: Chapter 16 Financial Planning and Control 0.60x 1.05x 0.38x 1.07x Your boss says, "Looking good so far. However, I would like to know how we stack up against our strongest competitor, Sunderland Co." Compare the degree of operating leverage of Sunderland Co, with that of Newcastle Co. and then answer the following question. All else being equal, is Newcastle Co, more risky than, less risky than, or as equally risky as Sunderland Co., considering that the degree of financial leverage for Sundertand Co. is 1.07 ? Equally risky Less risky More risky Not enough information given