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4. Which cf the fcllcwing statements is true cf the debt tc equity ratic? c The higher the debt he equity ratic, the lcwerthe ccmpanyds

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4. Which cf the fcllcwing statements is true cf the debt tc equity ratic? c The higher the debt he equity ratic, the lcwerthe ccmpanyds nancial risk. a If the debt tc equity ratic is less than I, then the ccinpany is nancing mere assets with debt than with equity. c If the debt tc equity ratic is greater than 1, then the ccrapany is nancing Incre assets with equity than with debt

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