write my assignment 1068

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.

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…