Answer the questions below based on the following information. The tax rate is 35% and all dollars are in millions. Assume that the companies have no liabilities other than the debt shown below.

Suunto Inc. Runrun Corp.

Earnings before interest and taxes Suunto: $280 Runrun: $294

Debt (at 10% interest) Suunto: $140 Runrun: $840

Equity Suunto: $560 Runrun: $210

a. Calculate each company's ROE, ROA, and ROIC. b. Why is Runrun's ROE so much higher than Suunto's? Does this mean Runrun is a better company. Why or why not? c. Why is Suunto's ROA higher than Runrun's? What does this tell you about the two companies? d. How do the two companies' ROICs compare? What does this suggest about the two companies?