. In 2012 and 2013, Inverness reduced debt by $500,000; $200,000 in 2012 and $300,000 in 2013. What would Inverness's ROE in 2012 and 2013 have been had the company paid used this cash to pay dividends to shareholders rather than reduce debt? Assume: Interest expense in 2012 would be increased by $15,000 and interest expense in 2013 would be increased by $35,000 Assume: no change in total assets Under which of the two scenarios would shareholders have been better off? Why