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Companies Heidee and Leaudy have the same sales, tax rate, interest rate on their debt, total assets, and basic earning power. Both companies have positive
- Companies Heidee and Leaudy have the same sales, tax rate, interest rate on their debt, total assets, and basic earning power. Both companies have positive net incomes. Company Heidee has a higher debt ratio and, therefore, a higher interest expense. Which of the following statements is CORRECT?
- Company Heidee has more net income.
- Company Heidee pays less in taxes.
- Company Heidee has a lower equity multiplier.
- Company heidee has a higher ROA.
- Company heidee has a higher times interest earned (TIE) ratio.
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