Question: Answer the questions below based on the following information. The tax rate is 3 5 % , and all dollars are in millions. Assume that
Answer the questions below based on the following information. The tax rate is and all
dollars are in millions. Assume that the companies have no liabilities other than the debt shown
below.
a Calculate each company's ROE, ROA, and ROIC.
b Why is Runrun's ROE higher than Suunto's? Does this mean Runrun is a better company?
Why or why not?
c Why is Suunto's ROA higher than Runrun's? What does this tell you about the two
companies?
d How do the two companies' ROICs compare? What does this suggest about the two
companies?
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