A). All other things being equal, the lower a company's debt to assets or debt to equity ratios, the greater its borrowing capacity. This statement is true or false?

B). The following information was drawn from the accounting records of Woo Company.

Current assets	$	50,000
Long-term assets (Plant assets)		350,000
Current liabilities		40,000
Long-term liabilities		100,000
Stockholders' Equity		260,000
Earnings before interest and taxes		60,000
Interest expense		15,000

Based on this information, the company's times interest earned measure is (round your answer to two decimal places.)

Multiple Choice

a. 4.33 times.

b. 6.66 times.

c. 2.50 times.

d. 4.00 times.

C). The higher a company's plant assets to long-term liabilities ratio, the greater its borrowing capacity. This statement is true or false?