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Business, 03.05.2021 15:00 bellbug08

6. GAMA Corp. and FAMA Corp. have the same tax rate, sales, total assets, and basic earning power. Both companies have positive net incomes. GAMA Corp. has a higher debt to asset ratio and, therefore, a higher interest expense. Which of the following statements is CORRECT? a. GAMA Corp. has a lower times interest earned (TIE) ratio. b. GAMA Corp. has more net income. c. GAMA Corp. pays more in taxes. d. GAMA Corp. has a lower ROE.

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6. GAMA Corp. and FAMA Corp. have the same tax rate, sales, total assets, and basic earning power. B...
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