The Debt Ratio of Company a Is

Multiple Choice

The debt ratio of Company A is .31 and the debt ratio of Company B is .21.Based on this information,an investor can conclude:

A) Company B has more debt than Company A.
B) Company B has a lower risk from its financial leverage.
C) Company A has a lower risk from its financial leverage.
D) Company A has 10% more assets than Company B.
E) Both companies have too much debt.