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The Board of Directors of Baldwin determined that management take measures to increase their financial Leverage next year by 5%. Assume that the ROS performance
The Board of Directors of Baldwin determined that management take measures to increase their financial Leverage next year by 5%. Assume that the ROS performance will be 10% better and that the Net Sales and Assets will grow in the same proportion. What will be Baldwin's next year's ROE?
current roe = 10.3% ros= 5.1% leverage = 1.9 asset turnover = 1.06
a. 11.2%
b. 10.8%
c. 11.0%
d. 11.9%
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