Company A and Company B have the same total assets, operating income (EBIT), tax rate, and business risk

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Company A and Company B have the same total assets, operating income (EBIT), tax rate, and business risk. Company A, however, has a much higher debt ratio than Company B. Company A's basic earning power (BEP) exceeds its cost of debt financing (r.). Which of the following statements is most correct?

a. Company A has a higher retum on assets (ROA) than Company B.

b. Company A has a higher times interest eamed (TIE) ratio than Company B.

c. Company A has a higher return on equity (ROE) than Company B, and its risk, as mcasured by the standard deviation of ROE, is also higher than Company B's

d. Statements b and c are correct.

e. All of the statements above are correct.