Big Valley's Use of Debt to Finance Assets Indicates That

Big Valley's use of debt to finance assets indicates that Big Valley has ____________ the typical firm in the industry.

A) more long-term solvency risk than
B) the same long-term solvency risk as
C) less interest expense than
D) less long-term solvency risk as
E) a lower market value of equity to book value of equity ratio than BV's Debt/TA = (160 + 230) /605 = 64.4%; Peer Debt/TA = 50%