dos tocala by a firm's credito Barn Inc. has a debt-to-equity ratio of 2.00, compared to the industry average of 2.40. Its competitor Healy Corp, however, has a debt-to-equity ratio of 1.60. Based on what debt-to-equity ratios imply, which of the following statements is true? O Shoe Barn Inc. has higher creditworthiness as compared to Heally Corp O Heally Corp. has a greater risk of bankruptcy than Shoe Barn Inc. O Shoe Barn Inc, has greater financial risk as compared to Heally Corp. but lower than the average financial risk in the industry. O Heally Corp.'s creditors face higher risk than the average financial risk in the industry Suppose the stock price of Shoe Barn Inc. falls by 10%, what impact will it have on its market-to-debt ratio if nothing changes in the company's balance sheet? The market debt ratio 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. O The market debt ratio will decrease, reflecting a decrease in the financial risk of the company. The market debt ratio will increase, reflecting an increase in the financial risk of the company. Data Collected (Millions of dollars) Shoe Barn Inc. reported the following figures in its annual report. EBITDA Interest payments Principal payments $100 $10 Based on the information, Shoe Barn Inc. has the ability to cover its fixed financial charges