Wolfe Company has debt totaling $$2,000,000$ and total stockholders$$ equity of $$4,300,000.$ Tiger Company has debt totaling $$3,100,000$ and stockholders$$ equity of $$5,000,000.$

Calculate the debt ratio for each company. $($Hint: You will find an explanation of the debt ratio and how it is computed in Exhibit $10-8.)$

Identify the correct statement.