TRS Company Has a Ratio of (Total Debt/total Assets)that Is

Multiple Choice

TRS 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 these