i think the answer should be c.

EW Arrange VIEW SMART VIEW IL A Text Direction NOOO Align Text AZZBO- Convert to SmartArt Paragraph Concept Check v Drawing Geisner Inc. has total assets of $1,000,000 and total liabilities of $600,000. The industry average debt to equity ratio is 1.20. Calculate Geisner's debt to equity ratio and indicate whether the company's default risk is higher or lower than the average of other companies in the industry. a. 0.60; Higher default risk. b. 0.60; Lower default risk. c. 1.50; Higher default risk. d. 1.50; Lower default risk. Debit to equity ratio = $600,000 / $400,000* = 1.50 * Equity - Assets - Liabilities = $1,000,000 - $600,000 = $400,000