Companies Heidee and Leaudy Have the Same Tax Rate,sales,total Assets,and

Companies Heidee and Leaudy have the same tax rate,sales,total assets,and basic earning power.Both companies have positive net incomes.Company Heidee has a higher debt ratio and,therefore,a higher interest expense.Which of the following statements is CORRECT?

A) Company Heidee has a lower times interest earned (TIE) ratio.
B) Company Heidee has a lower equity multiplier.
C) Company Heidee has more net income.
D) Company Heidee pays more in taxes.
E) Company Heidee has a lower ROE.