Companies hd and ld have the same tax rate, sales, total assets, and basic earning power. both companies have positive net incomes. both firms finance using only debt and common equity, and total assets equal total invested capital. company hd has a higher total debt to total capital ratio and therefore a higher interest expense. which of the following statements is correct? a. company hd has a lower equity multiplier. b. company hd has a lower roe. c. company hd has a lower times-interest-earned (tie) ratio. d. company hd has more net income. e. company hd pays more in taxes.

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls