< Target recently reported the following end-of-year balance sheet data (in millions): Year 3 Year 2 Year 1 $41,290 $40,303 $37,431 Total assets Total liabilities 29,993 28,652 26,478 Total stockholders' equity 11,297 11,651 10,953 a. Compute the ratio of liabilities to stockholders' equity for all three years. Round to two decimal places. Liabilities to stockholders' equity ratio Year 1 Year 2 Year 3 b. Which of the following statements is true? 1. A high ratio of liabilities to stockholders equity is favorable to the creditors. 2. A low ratio of liabilities to stockholders equity is favorable to the creditors. 3. A high ratio of liabilities to stockholders equity is favorable to the stockholders. 4. A low ratio of liabilities to stockholders equity is favorable to the stockholders.