3.

a) What features of accounting(if any) would make it costly for dishonest managers to make same changes without making any corresponding economic changes?

b) In 2018 Beximco had return on equity of 69.03% whereas Acmes return was only 13.07%. Use the decomposed ROE framework to prove the ROEs are correct and also state possible reasons for this difference based on the data below-

	Beximco	Acme
NOPAT/Sales	13.5%	4.05%
Sales/Net Assets	3.24%	4.095%
Effective after- tax interest rate	3.6%	1.65%
Net Financial Leverage	.63	-.24