The correct answer is B (21%).

Explanation: The debt-to-capital ratio is calculated as: $\text{Debt-to-Capital Ratio} = \frac{\text{Total Debt}}{\text{Total Debt} + \text{Total Shareholders' Equity}}$

• Total Debt includes short-term interest-bearing debt (700), current portion of long-term interest-bearing debt (500), and non-current portion of long-term interest-bearing debt (800), summing to 2,000.
• Total Shareholders' Equity is 7,500.

Thus, the calculation is: $\frac{2,000}{2,000 + 7,500} = \frac{2,000}{9,500} = 0.211 \text{ or } 21\%$

Why not A or C?

• A (17%) excludes the current portion of long-term interest-bearing debt, leading to an incorrect total debt of 1,500 and a ratio of 17%.
• C (27%) incorrectly calculates the debt-to-equity ratio instead of the debt-to-capital ratio, resulting in 27%.