.

If a firm's net sales (i.e., revenue)

increases, but total assets,

its debt ratio,

and its

net profit margin and

remain the same as they were before

net sales increased

, the firm's:

a.ROE would not change.

b.

ROE could either increase or decrease depending on the interaction between the equity multiplier and

the days payable ratio.

c.ROE would increase.

d.ROE would decrease.

e.

There is insufficient information to determine the effect on ROE