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Given the Following Data A Compute the Ratio of Liabilities to Stockholders' Equity for Dec

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Given the following data:
 Dec. 31,2014 Dec. 31,2013 Total liabilities $128,250$120,000 Total stockholders’ equity 95,00080,000\begin{array}{lcl}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\\\text { Total liabilities } & \$ 128,250 & \$ 120,000 \\\text { Total stockholders' equity } & 95,000 & 80,000\end{array}

a. Compute the ratio of liabilities to stockholders' equity for each year.
b. Has the creditors' risk increased or decreased from December 31, 2013, to December 31, 2014?


Definitions:

Conventional CAPM

The traditional Capital Asset Pricing Model that calculates the expected return on an investment by assessing risk relative to the market as a whole.

Human Capital

The economic value of an individual’s skills, knowledge, and experience, considered in relation to their contributions to an economy or business.

Market Proxy

Market Proxy is a representative element, such as a stock index, that is used to approximate the behavior or characteristics of the overall market.

True Market Portfolio

An idealized portfolio that includes all available assets in all global financial markets, proportionally weighted by their total market value.

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