A family member of a HighGene Pharmaceuticals executive strangely sells all of her shares at the market price in day 1. Without the existence of any news (including the sale) that can affect the stock price in between, the stock trades at a similar price until day 10 when the news arrives that the company’s only product was not approved by the FDA. The stock price drops to as the information is revealed to investors.

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld