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Which statement about EM and its impact on ROE is incorrect? ROE is higher than ROA when the company uses debt to finance some of its assets. This is known as financial leverage. Naches is using more debt than the industry average. Naches' EM is lower than the industry average, which means that it has a less risky level of debt. Naches can increase EM and improve ROE by adding some debt. Adding debt adds more risk to the company. If Naches adds debt to the same percentage of assets as the rest of its industry, its riskiness would be on par with other companies in its industry. Which statement about EM and its impact on ROE is incorrect? ROE is higher than ROA when the company uses debt to finance some of its assets. This is known as financial leverage. Naches is using more debt than the industry average. Naches' EM is lower than the industry average, which means that it has a less risky level of debt. Naches can increase EM and improve ROE by adding some debt. Adding debt adds more risk to the company. If Naches adds debt to the same percentage of assets as the rest of its industry, its riskiness would be on par with other companies in its industry