Palo Alto Industries has a debt-to-equity ratio of 1.6 compared with the industry average of 1.4. This means that the company

will not experience any difficulty with its creditors.

has less liquidity than other firms in the industry.

will be viewed as having high creditworthiness.

has greater than average financial risk when compared to other firms in its industry.

Palo Alto Industries has a debt-to-equity ratio of 1.6 compared with t

1.	Palo Alto Industries has a debt-to-equity ratio of 1.6 compared with the industry average of 1.4. This means that the company
A.	will not experience any difficulty with its creditors.
B.	has less liquidity than other firms in the industry.
C.	will be viewed as having high creditworthiness.
D.	has greater than average financial risk when compared to other firms in its industry.
Answer» E.