emaining Time: 1 hour, 07 minutes, 16 seconds. muestion Completion Status: Moving to another question will save this response. Question 11 of 25 tion 11 10 points Save Answer 1. Companies HD and LD have the same sales, tax rate, interest rate on their debt, total assets, and basic earning power. Both firms finance using only debt and common equity and total assets equal total invested capital Both companies have positive net income Company HD has a higher total debt to total capital ratio and therefore, a higher interest expense. Which of the following statements is CORRECT? Company HD has a lower equity multiplier Company HD has a higher ROA Company HD has a higher times interest carned (TIE) ratio Company HD pays less in taxes