Division a Has a Higher ROE Than Division B, Yet

Multiple Choice

Division A has a higher ROE than Division B, yet Division B creates more value for shareholders and has a higher EVA than Division A. Both divisions, however, have positive ROEs and EVAs. What could explain these performance measures?

A) Division A is riskier than Division B.
B) Division A is much larger (in terms of equity capital employed) than Division B.
C) Division A has less debt than Division B.
D) Statements a and b are correct.
E) All of the statements above are correct.