Interview Question - can't quite crack

[meeee20]

@da\_mad\_tiki

@meeee20

the company with the higher Debt/equity would have a lower p.e as it would have a higher cost of capital. also p/e=market capitalisation/net earnings

not sure how you figure this as 1$ of equity funding is almost always more expensive than 1$ of debt funding but it clearly depends on cap structure

depends on the capital structure. mine was a straight forward answer from all the info given in the question