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What effect would you expect this action to have on andrews

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Reference no: EM132354961

This year Andrews achieved an ROE of 21.7%. Suppose management takes measures that increase Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Andrews's ROE?

Select: 1

  • Andrews ROE will decrease.
  • Andrews ROE will remain the same.
  • Andrews ROE will increase.

Reference no: EM132354961

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