You want to lend money to a small business in your town as an investment. You have 5 businesses that you are considering. Which of the following presents the lowest risk to you the lender?
a.A firm with a debt-equity ratio of .7 and an interest coverage ratio of 4.
b.A firm with a debt-equity ratio of .3 and an interest coverage ratio of 5.
c.A firm with a debt-equity ratio of .7 and an interest coverage ratio of 2.
d.A firm with a debt-equity ratio of 5 and an interest coverage ratio of .3.
e.A firm with a debt-equity ratio of 2 and an interest coverage ratio of .7