This year Andrews achieved an ROE of 11.3%. 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?

Select: 1

Andrews ROE will decrease

Andrews ROE will remain the same

Andrews ROE will increase