Business
Business, 04.12.2019 02:31, katieleeisaacs8976

Companies hd and ld have identical tax rates, total assets, total investor-supplied capital, and returns on investors’ capital (roic), and their roics exceed their after-tax costs of debt, rd(1 – t). however, company hd has a higher debt ratio and thus more interest expense than company ld. which of the following statements is correct? a. the two companies have the same roa.
b. company hd has a lower roa than company ld.
c. company hd has a lower roe than company ld.
d. company hd has a higher net income than company ld.
e. the two companies have the same roe.

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