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This year Andrews achieved an ROE of 17.6%. Suppose next year the profit margin (Net Income/Sales) increases. Assuming sales, assets and financial leverage remain the

This year Andrews achieved an ROE of 17.6%. Suppose next year the profit margin (Net Income/Sales) increases. Assuming sales, assets and financial leverage remain the same next year, what effect would you expect this action to have on Andrews's ROE?
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Andrews ROE will increase.
Andrews ROE will decrease.
Andrews ROE will remain the same.

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