Companies HD and LD have identical tax rates, total assets, and basic earning power ratios, and their basic earning power exceeds their before-tax cost of debt, rd. However, Company HD has a higher debt ratio and thus more interest expense than Company LD. Which of the following statements is CORRECT? Answer Company HD has a higher net income than Company LD. Company HD has a lower ROA than Company LD. Company HD has a lower ROE than Company LD. The two companies have the same ROA. The two companies have the same ROE