You are presented with two companies with the same total equity of $200 Million. However, they have raised the money needed to finance investments differently as follows:

	A Company	B Company
Debt, 10%	40,000,000	160,000,000
Shareholders Equity	160,000,000	40,000,000
Total Equities	200,000,000	200,000,000
EBIT	50,000,000	50,000,000
Interest Expense	4,000,000	16,000,000
Profit before tax	46,000,000	34,000,000
Tax	18,400,000	13,600,000
Profit	27,600,000	20,400,000

Determine the following:

1. Return on Assets
2. Return on Equity
3. Evaluate the financial leverage of the companies
4. Comment on the performance of the companies