The extent of financial leverage in a firm Debt ratios measure the proportion of total assets financed by a firm's creditors. Fuzzy Button Brewers has a debt-to-equity ratio of 3.60 , compared to the industry average of 4.32. . Its competitor Cold Duek Brewing Company, however, has a debt-to-equity ratio of 2.88. Based on what debt-to-equity ratios imply, which of the following statements is true? Cold Duck's creditors face higher risk than the average financial risk in the industry. Fuzzy Button has higher creditworthiness as compared to Cold Duck. Coid Duck has a greater risk of bankruptcy than Fuzzy Button. Fuzzy Button has greater financial risk as compared to Cold Duck but lower than the average financial risk in the industry. Suppose the stock price of Cold Duck Brewing Company increases by 15%. What impact will it have on its market debt ratio if nothing changes in the company's balance sheet? The market debt ratio will decrease, reflecting a decrease in the financial risk of the company. The market debt ratio will increase, refiecting an increase in the financial risk of the company. The market debt ratio wit increase, reflecting a decrease in the financial risk of the company. The market debt ratio will decrease, reflecting an increase in the financial eisk of the company: Cold Duck Brewing Company reported the following figures in its annual report. Based on the information, Cold Duck Brewing Company has the ability to cover its fixed financial charges. times