In the process of preparing to taking out a loan in 3 years of today to build a office building. So to prep you will develop target ratios for the firm. Which set of ratios replicates the best target mix considering that are getting a loan in the near future?

1. Cash Coverage ratio =0.8 Debt coverage raio= 0.8

2. Cash coverage ratio= 2.6 debt equity ratio=0.3

3.cash coverage ratio= 0.5 total debt ratio= 0.2

4. times interest earned=1.7 debt equity ratio= 1.6

5. times interest earned= 1.5 debt equity ratio= 1.2