When a Company's ROE Is Greater Than Its ROA in a Given

Multiple Choice

When a company's ROE is greater than its ROA in a given time period, it could be that:

A) the company was able to borrow at an after tax rate that was less than the rate earned by investing in assets.
B) the company was able to borrow at an after tax rate that was higher than the rate earned by investing in assets.
C) the company has no debt.
D) the level of debt has no impact on the ROA