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Business, 15.11.2019 18:31 paulusl19

Companies hd and ld have the same sales, tax rate, interest rate on their debt, total assets, and basic earning power. both firms finance using only debt and common equity and total assets equal total invested capital. both companies have positive net incomes. company hd has a higher total debt to total capital ratio and, therefore, a higher interest expense. which of the following statements is correct?

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