A decomposition of ROE for Company A and Company B is as follows. An analyst is most likely to conclude that $\_\_\_\_\_\_\_\_.$ Company A Company B FY$15$FY$14$ FY$15$FY$14$ROE?? $??$Tax burden $0\mathrm{.}70\mathrm{.}750\mathrm{.}750\mathrm{.}75$Interest burden $0\mathrm{.}90\mathrm{.}90\mathrm{.}90\mathrm{.}9$EBIT margin $7\mathrm{.}00\%10\mathrm{.}00\%13\mathrm{.}06\%10\mathrm{.}00\%$Asset turnover $1\mathrm{.}51\mathrm{.}41\mathrm{.}51\mathrm{.}4$Leverage $4222$Question $1$ Answera.Company As ROE is higher than Company Bs in FY$15,$ and one explanation consistent with the data is that Company A may have purchased new, more efficient equipment.b$.$Company As ROE is higher than Company Bs in FY$15,$ and one explanation consistent with the data is that Company A has made a strategic shift to a product mix with higher profit margins.c$.$The difference between the two companies ROE in FY$15$ is very small and Company As ROE remains similar to Company Bs ROE mainly due to Company A increasing its financial leverage.d$.$Company Bs ROE is noticeably higher than Company As in FY$15.$ and one explanation consistent with the data is that Company B has made a strategic shift to a product mix with higher profit margins.