Companies hd and ld have the same tax rate, sales, total assets, and basic earning power.
both companies have positive net incomes.
company hd has a higher debt ratio and, therefore, a higher interest expense.

which of the following statements is correct?

a. company hd has a lower equity multiplier.

b. company hd has more net income.

c. company hd pays more in taxes.

d. company hd has a lower roe.

e. company hd has a lower times interest earned (tie) ratio.