问题如下：
4. Cannan’s preference to use the P/E ratio over the P/S ratio is best supported by:
选项：
A.Reason 1
B.Reason 2
C.Reason 3
解释：
C is correct.
The price to sales (P/S) ratio fails to consider differences in cost structures. Also, while share price reflects the effect of debt financing on profitability and risk, sales is a pre-financing income measure and does not incorporate the impact of debt in the firm’s capital structure. Earnings reflect operating and financial leverage, and thus the price-to-earnings (P/E) ratio incorporates the impact of debt in the firm’s capital structure.
老师好，想问下解析里为什么说：share price reflects the effect of debt financing on profitability and risk。股价是如何反应债券融资对利润和风险的影响的呢，公司借债越多，应该是风险越大，但是利润和股价是怎么变化？
