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?

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Definitions:

Imports

Goods and services bought by a country from foreign markets.

Trade Surplus

A situation where a country's exports exceed its imports for a given period, leading to a positive balance of trade.

Exports

Items or services dispatched from one country to another for the intent of trade or sale.

Imports

Commodities or offerings that are carried from abroad into a nation with the intent to sell them.