Choose one answer for each part:

Part $1$:

ROE conclusion, overall:

the firm is more efficient in earning a profit on each dollar of Equity than the industry average, and is improving.

the firm is more efficient in earning a profit on each dollar of Equity than the industry average, but is declining.

the firm is less efficient in earning a profit on each dollar of Equity than the industry average, but is improving.

the firm is less efficient in earning a profit on each dollar of Equity than the industry average, and is declining.

Part $2$:

ROE conclusion, performance relative to industry:

Return on Equity is better than the industry average performance due primarily to the superior Return on Assets.

Return on Equity is better than the industry average performance due primarily to higher financial Leverage.

Return on Equity is worse than the industry average performance due primarily to the inferior Return on Assets.

Return on Equity is worse than the industry average performance due primarily to lower financial Leverage.

Return on Equity is equal to the industry average.

Part $3$:

ROE conclusion, performance trend:

Return on Equity improvement is due primarily to the improvement in Return on Assets.

Return on Equity improvement is due primarily to the increase in financial Leverage.

Return on Equity fell due primarily to the decline in Return on Assets.

Return on Equity fell due primarily to the reduction in financial Leverage.

Return on Equity did not change compared to last year.

Part $4$:

Capital Structure conclusion:ROE Return on Equity $($EBIAT$)$

The capital structure is fine; it is not hurting the performance of the firm

The financial Leverage is not at a safe level; the capital structure is hurting the performance of the firm.

The financial Leverage is not at a safe level, but there are positive indicators of firm performance that suggest the capital structure is fine.