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Aster Inc. has a debt-to-equity ratio of 2.5. Its competitor has a debt-to-equity ratio of 3. Which of the following is true? Aster Inc's

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Aster Inc. has a debt-to-equity ratio of 2.5. Its competitor has a debt-to-equity ratio of 3. Which of the following is true? Aster Inc's financing is riskier relative to its competitor since it has more equity outstanding. Aster Inc. has less debt outstanding relative to equity than its competitor. Aster Inc.'s financing is less risky than its competitor since equity financing is more risky. Aster Inc. has more debt outstanding relative to equity than its competitor.

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