Milano Corporation Has Experienced Growth of 20% for Each of the Last

Multiple Choice

Milano Corporation has experienced growth of 20% for each of the last 5 years.Over this 5-year period,Milano's return on equity has never exceeded 15%,its profit margin has held steady at 5%,and its total asset turnover has not changed.Over the 5-year period,Milano paid no dividends and issued no new equity.Based on this information,which of the following can you most likely infer about Milano's performance over the past 5 years?

A) Milano's leverage has decreased.
B) Milano's leverage has remained constant.
C) Milano's leverage has increased.
D) None of the above.