Weghorst Co$.$ has a debt$-$to$-$equity ratio of $2\mathrm{.}40,$ compared to the industry average of $1\mathrm{.}92.$ Its competitor Bellywood Co$.,$ however, has a debt$-$to$-$equity ratio of $3\mathrm{.}60.$ Based on what debt$-$to$-$equity ratios imply, which of the following statements is true?

Weghorst Co$.$s shareholders expect magnified returns but higher risk as compared to Bellywood Co$.$

Bellywood Co$.$ has higher creditworthiness as compared to Weghorst Co$.$

Bellywood Co$.$ has greater financial risk as compared to Weghorst Co$.$ and to the average financial risk in the industry.

Bellywood Co$.$s creditors face lesser risk than the average financial risk in the industry.