The Following Return on Investment Ratios Were Computed for ET

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: