In 20X2, C Co's total liabilities were $10,742 million and shareholders' equity was $8,403 million. In 20X2, P Co's total liabilities were $16,259 million and their shareholders' equity was $6,401 million. Which of the following statements is false?

Multiple Choice

• C Co is more profitable than P Co.

• C Co's debt to equity ratio was 1.28 and P Co's was 2.54.

• C Co has only about 56.1% of its assets financed by debt while P Co has about 71.8% of assets financed by debt.

• P Co is a much higher leveraged company providing greater financial risk for investors but potential higher return on owners' investment to its shareholders.