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

Look at the Following Table of Data for Key Biscuit