Using REC's Financials, your boss asks you to compute ROE, using the Dupont, to determine the increase/decrease in ROE (a measure of management effectiveness) between 2007 and 2006.

(Analyze each of the three components) Choose the best answer that indicates all factors that drove the change. In other words, if ROE increased or decreased indicate all of the factors that either contributed to the increase, or if ROE declined only the factors that attributed to the decline.

	a.	Net Profit Margin
	b.	Asset Utilization
	c.	Leverage
	d.	choices a&b
	e.	choices b&c
	f.	choices a, b & c