Question: unny Co . has a debt - to - equity ratio of 4 . 0 0 , compared to the industry average of 3 .

unny Co. has a debt-to-equity ratio of 4.00, compared to the industry average of 3.20. Its competitor Carter Co., however, has a debt-to-equity ratio of 6.00. Based on what debt-to-equity ratios imply, which of the following statements is true?

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