Table 3.2
Dana Dairy Products Key Ratios Income Statement
Dana Dairy Products
For the Year Ended December 31, 2013 Balance Sheet
Dana Dairy Products
December 31, 2013
-Dana Dairy Products had a ________ degree of financial leverage than the industry standard, resulting in ________. (See Table 3.2)
A) lower; lower return on total assets
B) lower; lower return on equity
C) higher; higher return on equity
D) higher; higher return on total assets

Question

Table 3.2
Dana Dairy Products Key Ratios  Income Statement
Dana Dairy Products
For the Year Ended December 31, 2013  Balance Sheet
Dana Dairy Products
December 31, 2013 
-Dana Dairy Products had a ________ degree of financial leverage than the industry standard, resulting in ________. (See Table 3.2)
A) lower; lower return on total assets 
B) lower; lower return on equity 
C) higher; higher return on equity 
D) higher; higher return on total assets

Quizplus · Accepted Answer

According to Table 3.2, Dana Dairy Products had a lower degree of financial leverage than the industry standard, which resulted in a lower return on equity. Therefore, option B is the correct answer. None of the other options are supported by the information provided.

Table 3.2 Dana Dairy Products Key Ratios Income Statement