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Please find the balance sheet, ROIC and its drivers, and the effect of leverage and liquidity of ROE for Fast and Slow corp Ignore taxes

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Please find the balance sheet, ROIC and its drivers, and the effect of leverage and liquidity of ROE for Fast and Slow corp

Ignore taxes Operating assets Financial assets Operating liabilities Financial liabilities Equity FastCorp 170.00 30.00 40.00 60.00 100.00 SlowCorp 150.00 20.00 50.00 90.00 30.00 Net operating assets Invested capital Sales revenues Less: Operating expenses = Operating profit Plus: Interest income Less: Interest expense = Net income 600.00 560.00 40.00 1.50 6.00 35.50 300.00 280.00 20.00 1.00 9.90 11.10 ROI and its drivers Volume: Invested capital tumover [Sales/Invested capital] Margin: Operating profit margin % Retum on invested capital Retum on equity Analysis of leverage Interest expense rate: Interest expense/Financial liabilities Spread in %: ROIC - Interest expense rate Spread in $: Spread in % * Financial liabilities Spread in $/Equity: Boost to ROE because of financial liabilities Analysis of liquidity Interest income rate: Interest income/Financial assets Spread in %: ROIC - Interest income rate Spread in $: Spread in % * Financial assets Spread in $/Equity: Hit to ROE because of financial assets ROE = ROIC + Boost due to leverage - Hit due to liquidity FastCorp SlowCorp Balance Sheet NOA ROIC and its drivers Volume: Invested capital turnover (Sales/Invested capital: Show as a multiple but do not put an x at the end of the number.] Margin in %: [Enter 10.25% as 10.25] ROIC in % (Enter 10.25% as 10.25) The effect of leverage and liquidity on ROE ROE in % [Enter 10.25% as 10.25] Pre-tax Spread on Financial Liabilities in $ divided by Equity in $ [Show in %. Enter 10.25% as 10.25] [Positive number] Pre-tax Spread on Financial Assets in $ divided by Equity in $ [Show in %. Enter 10.25% as 10.25] [Positive number] IT

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