Q1: ROE, ROA, ROIC are given for Company A and Company B (unrelated to Flash Memory).
	Company A		Company B
Interest rate	6.0%		8.0%
Income tax rate	17.0%		17.0%
Debt	585		100
Equity	348		833
TOTAL LIAB+EQUITY	933		933
EBIT	86		86
- Interest expense	35.1		8
Earnings before tax	50.9		78
- Income tax	8.7		13.3
Earnings after tax	42.2		64.7
	Ratio	Fraction	Ratio	Fraction	Numerator	Denominator
RETURN ON EQUITY (ROE)	12.1%	42.2/348	7.8%	64.7/833	Earnings after tax	Equity
RETURN ON ASSETS (ROA)	4.5%	42.2/933	6.9%	64.7/933	Earnings after tax	Total Liab+Equity
RETURN ON INVESTED CAPITAL (ROIC)	7.7%	86*.83/933	7.7%	86*.83/933	EBIT * (1-Tax rate)	Total Liab+Equity

1a: Why is Company A ROE higher than Company B ROE? Is it better? Why? Why not?

1b: Why is Company A ROA lower than Company B ROA? What does it tell you about the two companies?

1c: How do the Company A & Company B ROICs compare? What does this suggest about the two companies?