A decomposition of ROE for Integra SA is as follows:        …

A decomposition of ROE for Integra SA is as follows:                                                               FY12                          FY11 ROE                                                  18.90%                      18.90% Tax burden                                        0.70                            0.75 Interest burden                               0.90                            0.90 EBIT margin                                    10.00%                      10.00% Asset turnover                                1.50                             1.40 Leverage                                            2.00                             2.00 Which of the following choices best describes reasonable conclusions an analyst might make based on this ROE decomposition?

A company is experiencing a period of strong financial perfo…

A company is experiencing a period of strong financial performance. In order to increase the likelihood of exceeding analysts’ earnings forecasts in the next reporting period, the company would most likely undertake accounting choices for the period under review that:

A decomposition of ROE for Company A and Company B is as fol…

A decomposition of ROE for Company A and Company B is as follows:     Company A   Company B     FY25   FY24   FY25   FY24 ROE   26.46%   18.90%   26.33%   18.90% Tax burden    0.7    0.75    0.75    0.75 Interest burden    0.9    0.9    0.9    0.9 EBIT margin    7.00%   10.00%   13.00%   10.00% Asset turnover    1.5    1.4    1.5    1.4 Leverage    4    2    2    2 An analyst is most likely to conclude that: