Question 5 (10 points): You are given the following information on Company A and Company...
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Question 5 (10 points): You are given the following information on Company A and Company B for FY15 and FY14. a. Based on the given information, calculate Return on Asset (ROA) and Return of Equity of companies for both years, (Show your calculation like A/B=C or (A+B)/C=D etc. in given cells). [5 points]: Company A Company B FY15 FY15 FY14 FY14 7% 10% 13% 10% Net Profit Margin Total Asset Turnover 1.5 1.4 1.5 1.4 Financial Leverage 4 2 2 2 ROA ROE b. Which company has higher ROA in FY15 and which company has higher ROE in FY15? [2.5 points]: c. What drives the difference between two companies' ROE in FY15? (2.5 points]
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