Ace Corporation Has a Debt to Total Assets Ratio of 65

Multiple Choice

Ace Corporation has a debt to total assets ratio of 65%. This tells the user of Ace's financial statements

A) Ace is getting a 35% return on its assets
B) There is a risk Ace cannot pay its debts as they come due
C) 65% of the assets are financed by the stockholders
D) Ace should issue more debt to reduce its risk