Companies HD and LD have the same tax rate, sales, total assets, and basic earnings power. Both companies have positive net incomes. Company HD has a higher debt ratio, and therefore a higher interest expense. Which of the following is correct? a. Company HD has a lower equity multiplier. b. Company HD has more net income. c. Company HD pays more in taxes d. Company HD has a lower ROE. e. Company HD has a lower times interest earned (TIE) ratio. Please explain why you chose your