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