QUESTIONS 5. A decomposition of ROE for Cash, Inc. is as follows 2010 2009 HOF 24.948 24.948% Tex Burden 0.7 0.7 Interest Burden 0.9 0.9 ESIT Margins 12 10% Asset Turnover 1.5 1.8 Leverage 2.2 2.2 Which of the following best describes reasonable conclusions to make based on this ROE decomposition? a. Profitability improved by an amount which offset the decrease in operating efficiency in 2010, leaving ROE unchanged." *b. Profitability declined by an amount which offset the increase in operating efficiency in 2010, leaving ROE unchanged." O c The higher average tax rate in 2010 offset the improvement in efficiency, leaving Roe unchanged