Labant Corporation is considering two financing alternatives. Under the first alternative, interest expense would be $280,000 and there would be 208,000 common shares outstanding. Under the second alternative, interest costs would be $200,000 and there would be 210,000 common shares outstanding. Labant has EBIT of $800,000 and is in the 30% tax bracket.

What is the degree of financial leverage for Labant's second financing alternative?

A. 1.49

B. 2.55

C. 1.33

D. 1.54

E. 1.96

F. It is impossible to tell from the information given.