Question
This year Andrews achieved an ROE of 5.5%. 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 5.5%. 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 Andrews's ROE?
| A)Andrews ROE will remain the same
C)Andrews ROE will decrease | |
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Finance For Development
Authors: Barbara Stallings
1st Edition
0815780850, 978-0815780854
