If a Firm Has a Debt to Owners' Equity Ratio

Multiple Choice

If a firm has a debt to owners' equity ratio of 54 (or 54%) we can conclude that:

A) it has relied more on debt than equity to finance its operations.
B) the firm is likely to have trouble paying its short term debts when they come due.
C) its total liabilities are less than its owners' equity.
D) the firm has expenses that are exactly 54% of its gross margin.