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QUESTION 4 Companies A and B are both profitable, and they have the same total assets (TA), total invested capital, sales (S), return on assets

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QUESTION 4 Companies A and B are both profitable, and they have the same total assets (TA), total invested capital, sales (S), return on assets (ROA), and profit margin (PM). Both firms finance using only debt and common equity. However, Company A has the higher total debt to total capital ratio. Which of the following statements is CORRECT? Company A has a lower total assets turnover than Company B Company A has a lower equity multiplier than Company B. Company A has a higher fixed assets turnover than Company B. Company A has a higher ROE than Company B. Company A has a lower operating income (EBIT) than Company B. man Company

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