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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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