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The following is a list of selected information for LiverpoolCo. for the fiscal year.Forecasted OperationsSales with 30.00% IncreaseUnit ChangeSales in units (millions)20026060Earnings before interest and taxes (EBIT)4,000.005,600.001,600.00Less: Interest(150.00)(150.00)(0.00)Earnings before taxes$3,850.00$5,450.00$1,600.00Less: Taxes (40%)1,540.002,180.00(0.00)Net income2,310.003,270.00960.00Earnings per share (20 million shares)$115.50$163.50$48.00You are an employee for Liverpool Co., and your boss needs helpassessing the level of risk associated with the firm’s currentfinancial position. Begin by calculating the degree of financialleverage for the change between forecasted operations and theoperational increase of 30.00%.0.60X1.04X0.42X1.03XYour boss says, “Looking good so far. However, I would like toknow how we stack up against our strongest competitor, Everton Co.”Compare the degree of operating leverage of Everton Co. with thatof Liverpool Co. and then answer the following question.All else being equal, is Liverpool Co. more risky than, lessrisky than, or as equally risky as Everton Co., considering thatthe degree of financial leverage for Everton Co. is 1?Not enough information givenMore riskyLess risky