This year Baldwin achieved an ROE of 1.2%. Suppose the Board of Directors of Baldwin mandates that management take measures to decrease financial Leverage (Assets/Equity) next year. Assuming Sales, Profits, and Assets remain the same next year, what effect would you expect this new Leverage policy will have on Baldwin's ROE?

Select: 1

	Baldwin ROE will increase
	Baldwin ROE will remain the same
	Baldwin ROE will decrease