What Is Characteristic of Equity and Debt Financing

What is characteristic of equity and debt financing?

A) If the long-term debt-to-equity ratio is lower, it is more likely that the company will have difficulty in meeting its obligation in some future period.
B) Interest and dividend payments must be made by the issuing company.
C) If the debt-to-equity ratio is higher, it is more likely that the company will have difficulty in meeting its obligation in some future period.
D) Most companies prefer to have no debt and to rely exclusively on equity financing.