ols Debt ratios measure the proportion of total assets financed by a firm's creditors, Carlson Co. has a debt-to-equity ratio of 1.00, compared to the industry average of 0.80. Its competitor Tucci Co., however, has a debt-to-equity ratio of 1.50. Based on what debt-to-equity ratios imply, which of the following statements is true? O Carlson Co.'s shareholders expect magnified returns but higher risk as compared to Tucci Co. Tucci Co. has higher creditworthiness as compared to Carlson Co. O Tucci Co.'s creditors face lesser risk than the average financial risk in the industry. Tucci Co. has greater financial risk as compared to Carlson Co. and to the average financial risk in the industry. Suppose the stock price of Tucci Co. increases by 15%. 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 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. The market debt ratio will increase, reflecting a decrease in the financial risk of the company. Data Collected (Millions of dollars) Year 1 Tucci Co. reported the following figures in its annual report e to search hp