You are an activist investor looking to put pressure on firms that have too much cash to return some of that cash to stockholders. Which of the following firms would you put the most pressure on to return cash? Assume that all of these firms have a cost of capital of 10% and an optimal debt ratio of 40%

Select one:

a.Firm B: ROC=25%, Actual debt ratio=60%

b.Firm C: ROC=5%, Actual debt ratio=10%

c.Firm D: ROC=5%, Actual debt ratio=35%

d.Firm A: ROC=25%, Actual debt ratio=40%