Companies Heidee and Leaudy have the same tax rate, sales, 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?

a. Heidee has a lower equity multiplier than Leaudy.

b. Heidee has a lower ROE than Leaudy.

c. Heidee has a lower times interest earned (TIE) ratio than Leaudy.

d. Heidee pays more in taxes than Leaudy.

e. Heidee has more net income than Leaudy.