A firm decides to issue $1,000 of stock in order to pay down the principal on its long-term debt. There will be no impact on interest expense during the current reporting period. How will these two transactions impact the ROE and ROIC of the firm during the current reporting period?

ROE WILL BE HIGHER WILL BE LOWER WILL NOT CHANGE IS INDETERMINATE ROIC WILL BE HIGHER WILL BE LOWER WILL NOT CHANGE IS INDETERMINATE

How will these two transactions impact the ROE and ROIC of the firm during subsequent reporting periods? ROE WILL BE HIGHER WILL BE LOWER WILL NOT CHANGE IS INDETERMINATE ROIC WILL BE HIGHER WILL BE LOWER WILL NOT CHANGE IS INDETERMINATE