For each$$ company, ROE$>$ROA. Why is that$$ so$?$ Look at the difference between ROE and ROA for each company. Does that difference help you determine which firm uses the highest percentage of debt to finance its$$ activities? $($Select the best answer$$ below.$)$

A$.$

The difference between ROE and ROA arises because a$$ firm's common stock equity typically exceed its$$ assets, with the difference being the$$ firm's liabilities. The more a firm$$ borrows, the larger the gap between its assets and its equity.