Answer the questions below based on the following information. Taxes are 35 percent and all dollars are in millions. Sesame Inc. Rogers Corp Earnings before interest and taxes $280 $294 Debt (at 10% interest) $140 $840 Equity $560 $210

a. Calculate each company's ROE, ROA, and ROIC.

b. Why is Rogers's ROE so much higher than Sesames? Does this mean Rogers is a better company? Why or why not?

c. Why is Sesame's ROA higher than Rogers's? What does this tell you about the two companies?

d. How do the two companies' ROICS compare? What does this sug- gest about the two companies?

AppendixLO1