Question: 1. What is the difference between ROA and ROE? If a firm is entirely financed by equity (no debt), will these measures be the same?

1. What is the difference between ROA and ROE? If a firm is entirely financed by equity (no debt), will these measures be the same? 2. How can the ROE be broken down into three components? Explain each one of those components and explain what and how these are measured. 3. What do liquidity ratios measure? What are the most common liquidity ratios and why would a financial manager care to track these ratios

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