The following information is available for firm A for 2020:

Net Sales: 10,000,000

Cost of Goods Sold: 7,000,000

Interest Expense: 200,000

Income Tax Expense: 500,000

Net Income: 1,000,000

Preferred dividends: 0

Total Assets (as of 12/31/20): 20,000,000 (as of 12/31/19: 19,000,00)

Total Liabilities (as of 12/31/20): 4,000,000 (as of 12/31/19: 3,000,000)

Stockholders equity (as of 12/31/20): 16,000,000 (as of 12/31/19: 16,000,000)

What is this firms Debt-to-Equity and Times Interest Earned (EBIT Interest Expense)? (All numbers are rounded to third decimal point)

Select one:

a. 0.25, 8.5

b. 0.111, 4

c. 0.167, 2

d. 0.2, 5