Companies HD and LD Have Identical Tax Rates,total Assets,and Basic

Companies HD and LD have identical tax rates,total assets,and basic earning power ratios,and their basic earning power exceeds their before-tax cost of debt,r_d.However,Company HD has a higher debt ratio and thus more interest expense than Company LD.Which of the following statements is CORRECT?

A) Company HD has a lower ROA than Company LD.
B) Company HD has a lower ROE than Company LD.
C) The two companies have the same ROA.
D) The two companies have the same ROE.
E) Company HD has a higher net income than Company LD.