2. Leaders at several organizations, including Hostess Brands (Twinkies), Sbarro, and Blockbuster, have gotten significant raises or bonuses shortly before the firms filed for bankruptcy. The companies have argued that it was a necessary step to keep managers during a difficult time. Do you think this is a legitimate argument from an ethical stand-point? Discuss.

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