Firms That Use Financial Leases Must Consider Their Debt-To-Equity Ratios

Firms that use financial leases must consider their debt-to-equity ratios as inadequate measures of financial leverage because:

A) lenders are concerned about the firm's total liabilities and related cash flow.
B) debt displacement occurs with leasing.
C) less future debt can be raised for a growing firm when a lease is used.
D) All of the above.
E) None of the above.