EFG Ltd. reports:

• Net Income: $120,000
• Total Equity: $600,000
• Total Assets: $900,000
• Total Liabilities: $300,000

Requirements:

1. Calculate the return on assets (ROA).
2. Calculate the return on equity (ROE).
3. Compute the debt to equity ratio.
4. Assess the company’s financial performance compared to industry averages.
5. Analyze the impact of financial leverage on return on equity.