There was a question about causing the skating place to have a lower ROE. I did all the calcs and found it was leverage. Great. I scroll down and see that I have two leverage options. I am now going through the answer sheet, and it also only says leverage. So which was it - financial or operating?
Financial, measured by Assets/Equity. If I recall it was approx. 7 vs. 9. Unless I’m interpreting incorrectly, you can’t really figure out operating leverage via DuPont analysis.
Financial Leverage - Asset/Equity