Assume the information below for Ramer Company, for Matson Company, and for their common industry represents a recent year.

                                                  Industry

                               Ramer   Matson   Average

Current ratio                   3.50      2.80      3.00

Accounts receivable turnover  5.00       8.10      6.00

Inventory turnover             6.20      8.00      6.10

Times interest earned          9.00      12.30    10.40

Debt-to-equity ratio            0.70       0.40      0.55

Return on investment          0.15        0.12      0.15

Dividend payout ratio          0.80        0.60      0.55

Earnings per share             $3.00      $2.00        --

The attitudes of both Ramer and Matson concerning risk are best explained by the

A. Debt/equity ratio and times interest earned.

B. Dividend payout ratio and earnings per share.

C. Current ratio, accounts receivable turnover, and inventory turnover.

D. Current ratio and earnings per share.