An analyst has decided to capitalize the operating leases of Company A. Using information in the notes to the companys 2015 financial statements, she has determined that the present value of future minimum lease payments, at a discount rate of 10 percent, on December 31, 2015 equals 500 million. All lease contracts last another 5 years on December 31, 2015. As expected at the beginning of the year, the company reports an operating lease expense in its income statement for 2016 of 80 million. The companys tax rate equals 30 percent. The company does not engage in any new operating leases in 2016. The following information is also available from Company As financial statements (all ratios use beginning-of-the-year balance sheet values) Debt to capital (at beginning of 2016) = 0.55 Return on beginning equity in 2016 = 0.10 Assets / Capital (at beginning of 2016) = 3,400 million The effect of capitalizing Company As operating leases on its return on beginning equity equals A. An increase from 0.10 to 0.15 (rounded). B. An increase from 0.10 to 0.13 (rounded). C. A decrease from 0.10 to 0.07 (rounded). D. A decrease from 0.10 to 0.05 (rounded).