Companies Heidee and Leaudy Have the Same Tax Rate,sales,total Assets,and

question 40

Multiple Choice

Companies Heidee and Leaudy have the same tax rate,sales,total assets,and basic earning power.Both companies have positive net incomes.Company Heidee has a higher debt ratio and,therefore,a higher interest expense.Which of the following statements is CORRECT?

• A) Company Heidee has a lower times interest earned (TIE)ratio.
• B) Company Heidee has a lower equity multiplier.
• C) Company Heidee has more net income.
• D) Company Heidee pays more in taxes.
• E) Company Heidee has a lower ROE.

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Sexual activity that occurs before marriage, often considered in discussions of morality, religion, and culture.

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