Two Competitor Companies, Milly Ltd and Molly Ltd, Have the Following

Multiple Choice

Two competitor companies, Milly Ltd and Molly Ltd, have the following ratios at 31 December :
Which of the following statements are true?

A) Milly's capital structure is less risky than Molly but can cover its interest obligations more easily.
B) Milly's capital structure is less risky than Molly and it is less able to cover its interest obligations.
C) Milly's capital structure is more risky than Molly and it is less able to cover its interest obligations.
D) Milly's capital structure is more risky than Molly's but can cover its interest obligations more easily.