Question 5 1 pts Borrowing company uses relatively more debt to finance assets than Lowdebt corp. These companies are approximately the same size and operate in approximately the same way with similar EBIT. Because of the difference in debt Nodebt will definitely have higher Net Income than Borrowin Borrowing will have lower overall risk than Nodebt. Borrowiny's Net Income is expected to fill a prester percentage than Nodebt when Revenues foll, Borrowing will have lower tax deductions than Nodebt. Barrowing will be in a more secure place if there is a general economic downturn which is expected to lower sales