Total assets and operating income and same tax rate

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Reference no: EM131845309

1. The information for company A and B:

- The 2 companies have the same total assets and the same operating income and same tax rate

- A have the lower debt ratio and interest expense

- A have the higher profit ratio

2. Which of the following is the most correct?

A. B must have the higher level of sale

B. B must have the lower return of equity

C. B must have the higher time of interest earned ratio

D. B must have a lower return on asset

E. B must have a higher rate of market value

Reference no: EM131845309

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