Multiple Choice
Company R and Company S each have the same operating income (EBIT) and basic earning power (BEP) ratio. Company S, however, has a lower times-interest-earned (TIE) ratio. Which of the following statements is most correct?
A) Company S has a higher ROA.
B) Company S has a higher net income.
C) Company S has a higher interest expense.
D) Statements a and b are correct.
E) Statements a, b, and c are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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