Problem 12-10 (similar to) (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 pricelearnings ratio enjoyed by firm B as compared with firm A? a. Which firm appears to be excessively leveraged? (Select the best choice below.) O A. Firm A O B. Firm B O C. Firm C Data Table FIRM A FIRM C INDUSTRY NORM MEASURE FIRM B Debt ratio 25% 30% 45% 25% 14 times Times interest covered 13 times 15 times 12 times Price/earnings ratio 14 times 16 times 11 times 15 times (Click on the icon located on the top-right comer of the data table above in order to copy its contents into a spreadsheet.) Print Done