Firms a and B Have the Same Number of Shares

Multiple Choice

Firms A and B have the same number of shares outstanding.Relative to firm A,firm B is less capital intensive,has a lower debt to asset ratio and pays a larger proportion of its earnings as dividends.On the basis of these facts,would you say that:

A) Firm A offers a higher level of risk to shareholders than firm B.
B) Firm A offers a lower level of profitability than firm B.
C) Firm A has more fixed assets as a proportion of its total assets than firm B.
D) Firm A book value per share is smaller than that of firm B.