FOX Company Has a Ratio of (Total Debt/total Assets) That

Multiple Choice

FOX Company has a ratio of (total debt/total assets) that is above the industry average, and a ratio of (long term debt/equity) that is below the industry average. These ratios suggest that the firm

A) utilizes assets effectively.
B) has too much equity in the capital structure.
C) has relatively high current liabilities.
D) has a relatively low dividend-payout ratio.
E) None of the options are correct.