Question: An analyst compiles the following data for a company: FY13 FY14 FY15 ROE 19.8% 20.0% 22.0% Return on total assets 8.1% 8.0% 7.9% Total asset

An analyst compiles the following data for a company:

FY13 FY14 FY15 ROE 19.8% 20.0% 22.0%

Return on total assets 8.1% 8.0% 7.9%

Total asset turnover 2.0 2.0 2.1 Based only on the information above, the most appropriate conclusion is that, over the period FY13 to FY15, the company’s:

A . net profi t margin and fi nancial leverage have decreased.

B . net profi t margin and fi nancial leverage have increased.

C . net profi t margin has decreased but its fi nancial leverage has increased.

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