On an exam i got the following question:

Consider two companies A and B. They are similar except that their leverage ratios differ. You observe that the return on invested capital (ROIC) for both companies equals 8%, while the return on equity (ROE) for company A is 16% and that the ROE for company B is 4%. Which of the two companies has the highest leverage? Briefly, justify your answer.

On the surface level you would think that company A has the highest leverage, but assuming everything else identical is it even possible with reasonable assumptions to get a ROIC of 8% and a ROE of 4% for company B? How can the ROE be so much lower than the ROIC.