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This year Andrews achieved an ROE of 11.5%. Suppose management takes measures that increase Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and financial

This year Andrews achieved an ROE of 11.5%. 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?

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

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