Ferdinand Inc

Ferdinand Inc. and the Silvestre Company have the same tax rate, total assets, and basic earning power. Both companies have positive net incomes. Ferdinand has a higher debt ratio, and therefore, higher interest expense than Silvestre. Which of the following statements is correct?

A) Ferdinand has a higher ROA than Silvestre.
B) Ferdinand has a higher times interest earned (TIE) ratio than Silvestre.
C) Ferdinand has a higher net income than Silvestre.
D) Ferdinand pays less in taxes than Silvestre.
E) Ferdinand has a lower equity multiplier than Silvestre.