Last Year's Return on Equity Was 30

Multiple Choice

Last year's return on equity was 30%.This year the ROE has decreased to 20%,while the same amount of earnings was generated this year.The firm has no preferred stock.What caused the decrease?

A) Equity decreased by 10%.
B) Equity decreased by 50%.
C) Equity increased by 10%.
D) Equity increased by 50%.