Question: ABC Corp. and LMN Corp. have identical assets, sales, interest rates paid on their debt, tax rates, and EBIT. However, ABC uses more debt than

ABC Corp. and LMN Corp. have identical assets, sales, interest rates paid on their debt, tax rates, and EBIT. However, ABC uses more debt than LMN. Which of the following statements is CORRECT? Group of answer choices ABC would have to pay more in income taxes. ABC would have the lower equity multiplier for use in the DuPont equation. ABC would have the higher net income as shown on the income statement. ABC would have the lower net income as shown on the income statement

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