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blank 1: 7.14, 4.62, 5.81, 4.41 Debt ratios measure the proportion of total assets financed by a firm's creditors. Fuzzy Button Brewers has a debt-to-equity

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blank 1: 7.14, 4.62, 5.81, 4.41
Debt ratios measure the proportion of total assets financed by a firm's creditors. Fuzzy Button Brewers has a debt-to-equity ratio of 3.60, compared to the industry average of 4.32. Its competitor Cold Duck Brewing Company, however, has a debt-to-equity ratio of 2.88. Based on what debt-to-equity ratios imply, which of the following statements is true? Cold Duck's creditors face higher risk than the average financial risk in the industry. Fuzry Button has higher creditworthiness as compared to Cold Duck. Cold Duck has a greater risk of bankruptcy than Fuzzy Button. Fuzzy Button has greater financial risk as compared to Cold Duck but lower than the average financial risk in the industry. Suppose the stock price of Cold Duck Brewing Company increases by 15%. What impact will it have on its market debt ratio if nothing changes in the company's baiance sheet? The market debt ratio will increase, reflecting an increase in the financial risk of the company. The market debt rotio will decrease, reflecting an increase in the financial risk of the company. The market debt ratio will increase, reflecting a decrease in the financial risk of the company. The market debt ratio will decrease, reflecting a decrease in the financial risk of the company. Cold Duck Brewing Company reported the following figures in its annual report. Based on the information, Cold Duck Brewing Company has the ability to cover its fixed financial charges timer

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