1. Explain the meaning of the component driver ratios in the computation of ROA. 2. What impact does the leverage ratio have on ROA? 3. Under what circumstances will ROE be higher than ROA? Under what circumstances would ROE be lower than ROA? 1. Explain the meaning of the component driver ratios in the computation of ROA Select the component driver is in the computation of ROA, the formula for each component driver ratio and what each ratio measure Abbraion Arge) Ratio Ports Measure of minus preferred dvadends, any 2. What impact on the average ratio have on ROA? The leverage ratio measures When multiplied by ROA leverage magnis the return to make ROE 3. Under what circumstances will ROE be higher than ROA? Under what circumstances would ROE be lower than ROA I ROA is positive and the loverage ratio exced on the leverage makes ROE ROA alive, and the legends on the level RDE