Companies HD and LD have the same tax rate, sales, total assets, and basic earning power. Both companies have positive net incomes. Company HD has a higher debt ratio and therefore,a higher interest expense. Which of the following statements 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