Business, 21.02.2020 02:40, paaoolav

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 L. Which of the following statements is CORRECT?

(a) Company HD has a higher net income than Company LD.
(b) Company HD has a lower ROA than Company LD
(c) Company HD has a lower ROE than Company LD.
(d) The two companies have the same ROA.
(e) The two companies have the same ROE.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 00:30, kierafisher05

You wants to open a saving account. which account will grow his money the most

Answers: 1

continue

Business, 22.06.2019 04:10, Gillo34

An outside manufacturer has offered to produce 60,000 daks and ship them directly to andretti's customers. if andretti company accepts this offer, the facilities that it uses to produce daks would be idle; however, fixed manufacturing overhead costs would be reduced by 75%. because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. what is andretti's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

Answers: 3

continue

Business, 22.06.2019 12:50, DesperatforanA

Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise

Answers: 3

continue

Business, 22.06.2019 17:40, libi052207

Turrubiates corporation makes a product that uses a material with the following standards standard quantity 8.0 liters per unit standard price $2.50 per liter standard cost $20.00 per unit the company budgeted for production of 3,800 units in april, but actual production was 3,900 units. the company used 32,000 liters of direct material to produce this output. the company purchased 20,100 liters of the direct material at $2.6 per liter. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for april is:

Answers: 1

continue

Do you know the correct answer?

Companies HD and LD have identical tax rates, total assets, total investor-supplied capital, and ret...