The Debt-to-Equity ratio is Total Liabilities divided by Total Shareholders Equity. The Debt ratio is Total Liabilities divided by the sum of Total Liabilities and Total Shareholders Equity. Red Company has a Debt ratio of 45%. What can you say about the debt-to-equity ratio?

a. It will be more than 100%

b. It will be less than 100%.

c. It will be 45%.

d. Nothing can be said.