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This year Andrews achieved an ROE of 13.4%. Suppose management takes measures that decrease Asset turnover (sales/total assets) next year. Assuming sales, profits, and financial
This year Andrews achieved an ROE of 13.4%. Suppose management takes measures that decrease 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 Andrew's ROE? A. Andrews ROE will remain the same B. Andrews ROE will decrease C. Andrews ROE will increase
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