Sappy Syrup's ROA Equals the Industry Average, but Its ROE

question 1

Essay

Sappy Syrup's ROA equals the industry average, but its ROE exceeds the industry average. How is this possible?

---

Definitions:

VoIP

Voice over Internet Protocol, a technology that allows for voice communications and multimedia sessions over Internet Protocol networks.

Digital Phone

A telephone that uses digital signals to transmit voice communications, as opposed to traditional analog telephones.

Wired Network

A type of network where devices are connected using cables, offering more stability and security compared to wireless connections.

Traditional Phone Network

The landline telephone system, also known as the public switched telephone network (PSTN), which uses copper wires to transmit voice communication.