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Revenues increased by 30 percent in your firm during the past year while total assets increased only 5 percent and Equity Financing Ratios remained constant
Revenues increased by 30 percent in your firm during the past year while total assets increased only 5 percent and Equity Financing Ratios remained constant at 50.0 percent. Return on Equity remained constant at 12.0 percent. Why didn't Return on Equity increase?
A. | Total Asset Turnovers dropped | |
B. | Total Margins dropped | |
C. | Both A and B | |
D. | Neither A nor B |
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