QUESTION 3 Answer one of the following questions: 10 points a-Company XYZ took a loan in 2019, and the amount was AED 2000,000 with 5% interest, and the net income before interest was AED 650,000. In 2020, the company took another loan, and the amount was AED 2000,000 with 10% interest, and the net income before interest was AED 800,000. Although the net income increased in 2020, the return on equity (ROE) decreased compared to 2019. The number of shares has been the same for the two years. Required: As a financial analyst, you have been asked by a client to explain why the ROE decreased in 2020 though the net income increased in the same year. Explain your answer b- The following are the information on the "operating cycle" and "days accounts payable outstanding" for Company A, Company B, and Company C The operating cycle for Company A is 50 days, and the days accounts payable outstanding is 30. -The operating cycle for Company B is 70 days, and the days accounts payable outstanding is 80. The operating cycle for Company C is 30 days, and the days accounts payable outstanding is Required: Which company of the three companies has the most short-term liquidity problem? Explain your answer. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIVS Paragraph xx, Arial v 10pt 1712 Click Save and Submit to save and submit. Click Save All Answers to souse all answers. ALV IX 8 S Save and Su