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Companies A and B each have the same level of total assets, the same tax rate, same interest rate on debt, and the same earnings

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Companies A and B each have the same level of total assets, the same tax rate, same interest rate on debt, and the same earnings before interest and taxes (EBIT). Company A, however, has a higher debt ratio. Which of the following statements is most correct? Company A has a lower return on assets (ROA). Company A has a lower basic earning power (BEP). Company A has a lower times interest earned (TIE) ratio. Answers a and c are correct. All of the answers above are correct

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