Firm X and Firm Y are nearly identical firms, but differ in terms of their use of debt financing. Firm X is financed entirely with equity while Firm Y has a debt ratio of 50%. Both firms have a basic earning power (BEP) ratio of 20%. Which firm will have the higher ROE? Select one: a. Firm X b. Firm Y c. The value of Firm X will be equal to the value of Firm Y All else equal, companies with higher price/earnings (P/E) ratios are expected to have higher in the future Select one: a debt ratios b. stock price c. bankruptcy risks d. earnings growth e current ratios