Assume that the Return on Assets $($ROA$)$ is positive and given. Then, the Return on Equity $($ROE$)$ will increase,

the less debt the firm uses.

the more debt the firm uses.

Which ratio is related to the future prospects of the firm by factoring in what investors are willing to pay today?

The return on equity $($ROE$)$

The price$-$earnings ratio ratio$)$

The return on assets $($ROA$)$

The debt$-$equity ratio ratio$)$