The debt ratio of Braun is 0.9 and the debt ratio of Kemp is 1.0. Based on this information, an investor can conclude:
A. Braun has higher financial leverage.
B. Kemp has less financial leverage.
C. Kemp finances a relatively lower portion of its assets with liabilities than Braun.
D. Braun has less equity per dollar of assets than Kemp.
E. Kemp has the exact same dollar amount of total liabilities and total assets.
Answer: E
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