What Best Explains Why a Firm's Ratio of (Long Term

Multiple Choice

What best explains why a firm's ratio of (long term debt/total capital is lower than the industry average,while the ratio of (income before interest and taxes/debt interest charges) is lower than the industry average.

A) The firm pays lower interest on long-term debt than the average firm
B) The firm has more short-term debt than average
C) The firm has a high ratio of (current assets/current liabilities)
D) The firm has a high ratio of (total cash flow/long term debt)
E) none of these