The Following Return on Investment Ratios Were Computed for ET

question 148

Essay

The following return on investment ratios were computed for ET Company: $$\begin{array} { | l | r | r | r | r | } \hline & \underline { \mathbf { 2 0 X } } & \underline { \mathbf { 2 0 X } } & \underline { \mathbf { 2 0 X 3 } } & \underline { \mathbf { 2 0 X 4 } } \\\hline \text { Return on assets } & 12 \% & 15 \% & 15 \% & 18 \% \\\hline \text { Return on equity } & 15 \% & 15 \% & 11 \% & 20 \% \\\hline\end{array}$$ (a) Financial leverage percent for each year was: $$\begin{array} { | l | l | l | l | } \hline 20X1 :\underline{\quad\quad}& 20X2 : \underline{\quad\quad}\_ & 20 X3 : \underline{\quad\quad} & 20X 4 : \underline{\quad\quad}\\\hline\end{array}$$ (b) Explain briefly the shareholders' advantage or disadvantage for each year: 20X1: 20X2: 20X3: 20X4:

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Definitions:

Androgen Insensitivity

Androgen insensitivity is a condition in which an individual's body cannot properly respond to male sex hormones, leading to feminization in genetic males.

Newborns

Infants who are in the very first weeks of life following birth, typically considered to be up to one month old.

Sexual Behavior

Actions exhibited by individuals or groups relating to physical intimacy or sexual activity.

Instinctual

Relating to or based on instinct, innate patterns of behavior that are not learned.