5.

Company A and Company B have the same total assets, Return on Assets (ROA), and profit margin. However, Company A has higher liability-to-asset ratio and interest expense than Company B. Which of the following statements is most correct?

Select one:

a. Company B has a lower net income than Company A.

b. Company B and A have the same total assets turnover ratio.

c. Company B has a higher operating income (EBIT) than Company A.

d. Company B has a higher ROE than Company A.

e. Company B has a higher equity multiplier (EM) than Company A.