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Minden Co. has sales of $500,000, operating profit of $50,000, interest expense of $10,000, tax expense of $20,000, total equity of $125,000, and total debt

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Minden Co. has sales of $500,000, operating profit of $50,000, interest expense of $10,000, tax expense of $20,000, total equity of $125,000, and total debt of $275,000. In comparison, Minden Co.'s Return on Asset (ROA) is higher than its Return on Equity (ROE) because of leverage ROA is lower than its ROE because of leverage ROA is the same as its ROE ROA and ROE are both related to the return on sales none of the above

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