An Acquirer Will Be More Likely to Finance a Takeover

Multiple Choice

An acquirer will be more likely to finance a takeover using borrowed funds if

A) Its debt to equity ratio is increasing in the future
B) Its interest coverage ratio is decreasing in the future
C) Its interest coverage ratio is increasing and debt to equity ratio is decreasing in the future
D) Its interest coverage ratio is decreasing and debt to equity ratio is decreasing in the future
E) Its interest coverage ratio is increasing and debt to equity ratio is increasing in the future