Reference no: EM131782330

Paw Locker has the highest Return on Assets in its comparison group. Which of the following could be a secret to its success? (select all that apply) (Hint: look carefully at the definition of ROA to find only the items that will affect the ratio)

Company	Return on Equity	Return on Assets	Financial Leverage	Return on Sales	Asset Turnover
Dog Nation	0.177	0.060	3.740	0.026	2.338
Dog Shoe Warehouse	0.178	0.119	1.501	0.065	1.828
Hound Smart	0.177	0.112	1.762	0.038	2.930
Paw Locker	0.177	0.126	1.430	0.065	1.927
Pooch Mart	0.177	0.111	1.639	0.057	1.938

a. Able to charge a higher price than Pooch Mart

b. Holds lower inventory levels than Dog Shoe Warehouse

c.  Uses more equity financing than Dog Nation

d. Pays less interest expense than Pooch Mart

e. Uses less debt financing than Hound Smart