Problem $10-7$A $($Algo$)$ Applying the debt$-$to$-$equity ratio LO A$2$

The following information is available for both Pulaski Company and Scott Company at the current year$-$end.

$$Pulaski CompanyScott CompanyTotal assets$ $2,331,500$$ $1,200,500$Total liabilities$827,500521,500$Total equity$1,504,000679,000$

Required:

Compute the debt$-$to$-$equity ratio for both companies.

Which company has the riskier financing structure?