Company A and Company B have the same tax rate, total assets, and basic earning power. Both companies have positive net incomes. Company A has a higher debt ratio, and therefore, higher interest expense than company B. Which of the following statements is true?

A. Company A has a lower equity multiplier than company B

B. Company A pays less in taxes than Company B

C. Company A has a higher ROA than Company B

D. Company A has a higher times interest earned (TIE) ratio than Company B

E. Company A has a higher net income than company B