The following table contains ratios for 2005 and 2006 for Benrttd Company: 20052006 EBIT margin (EBIT/revenue) 0.150.10 Asset turnover (revenue/assets)1.001.50 Leverage ratio (assets/equity) 2.002.50 Tax burden (net income/EBT) 0.700.70 Interest burden (EBT/EBIT) 0.950.95 Which of the following statements about Benrud Company’s return on equity (ROE) is most accurate ROE:()
A. decreased, because the company’s profit margin fell.
B. increased, due to the increase in turnover and leverage.
C. increased, because the company’ s asset turnover increased.