Firms U and L each have the same amount of assets, investor-supplied capital, and both have a return on investors' capital (ROIC) of 12%. Firm U is unleveraged, i.e., it is 100% equity financed, while Firm L is financed with 50% debt and 50% equity. Firm L's debt has an after-tax cost of 8%. Both firms have positive net income and a 35% tax rate. Which of the following statements is CORRECT?

		The two companies have the same times interest earned (TIE) ratio.
		Firm L has a lower ROA than Firm U.
		Firm L has a lower ROE than Firm U.
		Firm L has the higher times interest earned (TIE) ratio.
		Firm L has a higher EBIT than Firm U.