(Assessing leverage use) Financial data for three corporations are displayed here: a. Which firm appears to be excessively leveraged? b. Which firm appears to be employing financial leverage to the most appropriate degree? c. What explanation can you provide for the higher price/earnings ratio enjoyed by firm B a a. Which firm appears to be excessively leveraged? (Select the best choice below) Data Table A. Firma B. Fim B OC. Firm C contents into a spreadsheet) (Click on the following icon in order to copy b. Which firm appears to be employing financial leverage to the most appropriate degree? MEASURE Debt ratio Times interest earned Priceleamings ratio FIRMA 25% 11 times 12 times FIRM B 30% 13 times 14 times FIRMC 45% 10 times 9 times INDUSTRY NORM 25% 12 times 13 times A. Firma B. Firm B C Firm C Print Done c. What explanation can you provide for the higher price earnings ratio enjoyed by firm B as compared with firm A? (Select the best choice below.) O A Firm B employs financial leverage to the extremely high degree and investors must perceive it to have higher growth potential and/or lower risk compared to firm A OB Firm B employs financial leverage to the lower than average degree and investors must perceive it to have lower growth potential and/or higher risk compared to fimm A