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Company A has a D/E ratio of 2 and Company B has a D/E ratio of 0.5. Based on th

Company A has a D/E ratio of 2 and Company B has a D/E ratio of 0.5. Based on that information, which of the following is true regarding their financing decisions?A. Company B is more highly leveraged than Company A.B. Company A has assumed less risk than Company B.C. Company A and B assume the same level of riskD. Company A is more highly leveraged than Company B.E. Company A is raising more capital through stock than debt.

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