Look at the following table of data for Key Biscuit Company:
What must have caused the firm's ROE to drop?
A) The firm began using more debt as a percentage of financing.
B) The firm began using less debt as a percentage of financing.
C) The compound leverage ratio was less than 1.
D) The operating ROA was declining.

Question

Look at the following table of data for Key Biscuit Company:
 What must have caused the firm's ROE to drop?
A) The firm began using more debt as a percentage of financing. 
B) The firm began using less debt as a percentage of financing. 
C) The compound leverage ratio was less than 1. 
D) The operating ROA was declining.

Quizplus · Accepted Answer

The Answer of Look at the following table of data for Key Biscuit Company:
 What must have caused the firm's ROE to drop?
A) The firm began using more debt as a percentage of financing. 
B) The firm began using less debt as a percentage of financing. 
C) The compound leverage ratio was less than 1. 
D) The operating ROA was declining.

Look at the Following Table of Data for Key Biscuit