1. Company ABC has a cash ratio of 3.2 and a debt ratio of 4.3. Company XYZ has a cash ratio 2.4 and a debt ratio of 5.1. Given this information, which of the following is likely true?

I.ABC will have a more difficult time covering expenses in the short term.

II.XYZ will have a higher stock price.

III.ABC will have a higher stock price.

IV.XYZ will have a more difficult time covering expenses in the short term