Interest Is Big Valley's Only Fixed Cash Charge

Interest is Big Valley's only fixed cash charge.
Big Valley's market value of equity to book value of debt ratio = 1.5.

Big Valley's return on equity indicates that the firm generates a ________ return to their shareholders than their peers.

A) 2.04 percent higher
B) 3.02 percent higher
C) 15.25 percent higher
D) 5.75 percent lower
E) 1.05 percent lower