Q3 Corp D has a debt ratio of 75%, which results in Financial Leverage of (2/4/25), therefore, ROE is (2/4/25) times greater than ROA. Corp A has no debt, therefore, ROA (=/>) ROE. Q4 Higher debt results in a (higher / lower) debt ratio, which leads to (higher / lower) Financial Leverage, which results in higher (ROA / ROE) because shareholders are assuming (higher / lower) risk. Q5 In the Primary Driver chart on the previous page: a. Circle the Primary Driver of ROA as either ROS or Asset Turnover. b. Circle the Primary Driver of ROE as either ROA, Financial Leverage, or of equal (A) contribution. Q6 a. The primary driver of ROA remains the same because (sales revenue / expenses / assets / liabilities) remain the same. b. The primary driver of ROE changes because (sales revenue / expenses / assets / liabilities) change. Q7 What is the primary driver of ROE when the debt ratio is: a. Less than 50% ? (ROA / =/LEV) b. Equal to 50\%? (ROA/=/LEV) c. Greater than 50\%? (ROA / =/LEV) Statement of Stockhoiders' Equity Q3 Corp D has a debt ratio of 75%, which results in Financial Leverage of (2/4/25), therefore, ROE is (2/4/25) times greater than ROA. Corp A has no debt, therefore, ROA (=/>) ROE. Q4 Higher debt results in a (higher / lower) debt ratio, which leads to (higher / lower) Financial Leverage, which results in higher (ROA / ROE) because shareholders are assuming (higher / lower) risk. Q5 In the Primary Driver chart on the previous page: a. Circle the Primary Driver of ROA as either ROS or Asset Turnover. b. Circle the Primary Driver of ROE as either ROA, Financial Leverage, or of equal (A) contribution. Q6 a. The primary driver of ROA remains the same because (sales revenue / expenses / assets / liabilities) remain the same. b. The primary driver of ROE changes because (sales revenue / expenses / assets / liabilities) change. Q7 What is the primary driver of ROE when the debt ratio is: a. Less than 50% ? (ROA / =/LEV) b. Equal to 50\%? (ROA/=/LEV) c. Greater than 50\%? (ROA / =/LEV) Statement of Stockhoiders' Equity