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9. company A and Company B have the same tax rate, the same total assets, and the same basic earning power. Both companies have a
9. company A and Company B have the same tax rate, the same total assets, and the same basic earning power. Both companies have a basic earning powerthat exceeds their before tax costs of debt. however, Company A has a higher debt ratio. Which of the following statements is correct.
a. Company A has higher net income than comapny B
b. Company B has a lower ROA than Comany A
c. Company A has higher ROE than company B
d. Company B has a lower WACC than Comapny A
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