#1

Your financial analyst calculated the following rat.icn for three Boeing Microsoft PG&E Cash ratio Debt ratio 0.15 1.3 0.9 0.1 0.4 0.1 0.8 Evaluate the statement "Boeing is a riskier company than Microsoft PG&E because of its higher debt ratio. " O Yes: A higher dcH ratio of B.*ing than that of PG&E is a sign of short-term illiquidity. o Yes: A higher debt ratio meMIS that the company is less capable of paying O Not necessarily: The debt ratios are not directly comparable, since each company is in a different industry.