$$Ladders$,$ Inc. has a net profit margin of $5\mathrm{.}2\%$ on sales of $ $49\mathrm{.}2$ million and $ $1\mathrm{.}4$ million of interest expense. It has book value of equity of $ $39\mathrm{.}6$ million and total book liabilities of $ $30\mathrm{.}8$ million. What is$$ Ladders' ROE? What is$$ Ladders' ROA?

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Part $1$

What is$$ Ladders' ROE?

$$Ladders$\text{'}$ ROE is

$$

enter your response here$\%.$

$($Round to two decimal$$ places.$)$

Part $2$

What is$$ Ladders' ROA?

$$Ladders$\text{'}$ ROA is

$$

enter your response here$\%.$

$($Round to two decimal$$ places.$)$ Assume you can earn $10\%$ per year on your investments.

a$.$ If you invest $$$$20$ comma $000$ for retirement at age$30,$ how much will you have $35$ years later for$$ retirement?

b$.$ If you wait until age $40$ to invest the $$$$20$ comma $000,$ how much will you have $25$ years later for$$ retirement?

c$.$ Why is the difference so$$ large?

Question content area bottom

Part $1$

a$.$ If you invest $$$$20$ comma $000$ for retirement at age$30,$ how much will you have $35$ years later for$$ retirement?

The amount of money you will have $35$ years later for retirement is $$$

$$

enter your response here. $($Round to the nearest$$ cent.$)$

Part $2$

b$.$ If you wait until age $40$ to invest the $$$$20$ comma $000,$ how much will you have $25$ years later for$$ retirement?

The amount of money you will have $25$ years later for retirement is $$$

$$

enter your response here. $($Round to the nearest$$ cent.$)$

Part $3$

c$.$ Why is the difference so$$ large?$$

The difference is large because the compounding effect is accentuated the

$$

longer

shorter

the time of investment.$($Select from the$$ drop$-$down menu.$)$