1. The information for company A and B:
- The 2 companies have the same total assets and the same operating income and same tax rate
- A have the lower debt ratio and interest expense
- A have the higher profit ratio
2. Which of the following is the most correct?
A. B must have the higher level of sale
B. B must have the lower return of equity
C. B must have the higher time of interest earned ratio
D. B must have a lower return on asset
E. B must have a higher rate of market value