6. Suppose you have the possibility to invest your savings in two companies, for which you have the following information: Company A Company B Net earnings=25 Return on assets=0.10 Interest expenses=5 Return on equity=0.125 Debt=150 Return on assets=0.10 Equity=300 Leverage ratio =2 Average interest rate= 0.05 a) From the point of view of Return on equity, which company is preferable? b) Would your answer change if company B doubled its leverage ratio? c) Would company A benefit from increasing its leverage ratio