Question: Statement 1: Under normal circumstances, Return on Total Capital will always be greater than Return on Assets. Statement 2: Given only debt-equity ratio it cannot

Statement 1: Under normal circumstances, Return on Total Capital will always be greater than Return on Assets. 

Statement 2: Given only debt-equity ratio it cannot be judged whether the return on equity will be greater than the return on asset. 

Statement 3: All else remaining equal if a company borrows more the return on equity of the company will increase. 

Which of the above statements are correct?
A. All 3 statements
B. Only Statement 1 and 3
C. Only Statement 2 and 3

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