Companies HD and LD Have Identical Tax Rates,total Assets,total Investor-Supplied

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,r_d(1 - T) .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 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.