What effect would you expect new leverage policy

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Reference no: EM131928955

cThis year Digby achieved an ROE of 19.2%. Suppose the Board of Directors of Digby 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 Digby's ROE?

Reference no: EM131928955

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