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Board of directors of andrews mandates

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Reference no: EM131892887

This year Andrews achieved an ROE of 24.4%. Suppose the Board of Directors of Andrews mandates that management take measures to decrease financial Leverage (Assets/Equity) next year. Assuming Sales, Profits, and Assets remain the same next year, what effect would you expect this new Leverage policy will have on Andrews's ROE?

Reference no: EM131892887

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