Question
This year Andrews achieved an ROE of 13.4%. 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 13.4%. 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 decrease
.Andrews ROE will increase.
Andrews ROE will remain the same.
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Quantitative Methods For Business
Authors: Donald Waters
5th Edition
273739476, 978-0273739470
