Donna is reviewing the most recent financial reports for four different companies for the purpose of calculating a variety of financial ratios. Which of the following statements about financial ratios is TRUE?a)Company A and Company B have current ratios of 1.87. Company A has a quick ratio of 1.45 and Company B has a quick ratio of 1.67. Therefore, Company A has a greater capacity to repay its debts as they come due. b)Four years ago, Company C had a gross profit margin of 18.56%. This year, the gross profit margin had decreased to 12.98%. This decline in the gross profit margin is directly related to the cost of raw materials. c)Company D wants to calculate its P/E ratio for its preferred shares. To do so, it divides the current market price of their common shares by the earnings per share during the previous year. d)Four years ago, Company E's earnings per common share was $6.17 with a market value of $15.00. This year, the earnings per common share had risen to $13.53 with a market value of $24.00. Company E's P/E ratio has declined.