If the debt to assets ratio for Dominion Resources, a large gas and electric utility company, is $\mathrm{.}71,$ and the

debt to assets ratio for Home Depot, a large building supplies retailer, is $\mathrm{.}53,$ which of the following

conclusions should a financial analysis reach?

Because Dominion Resources has a higher debt to assets ratio, it has less financial risk than

Home Depot.

Because Dominion Resources has a higher debt to assets ratio, it has more financial risk than

Home Depot.

Because the companies are in different industries, no good conclusion can be reached.