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Effect of transactions on ROA and ROE State whether the following transactions would affect ROA (using EBIT; presently 10 per cent), ROE (presently 15 per
Effect of transactions on ROA and ROE State whether the following transactions would affect ROA (using EBIT; presently 10 per cent), ROE (presently 15 per cent), both or neither: 1 asset revaluation upwards 2 increase in interest expense 3 increase in depreciation expenses 4 purchase new equipment for cash (ignore depreciation effects) 5 issue bonus shares issue ordinary shares to pay off a loan 7 increase the provision for long service leave 8 purchase equipment on credit (ignore depreciation)
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