Effect of transactions on ROA and ROE State whether the following transactions would affect ROA (using EBIT; presently 7 per cent), ROE (presently 11 per cent), both or neither:

1 issue bonus shares 2 asset revaluation upwards 3 increase in interest expense 4 issue ordinary shares to pay off a loan 5 increase in depreciation expenses 6 purchase new equipment for cash (ignore depreciation effects)

7 increase the provision for long service leave 8 purchase equipment on credit (ignore depreciation).