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This year Baldwin achieved an ROE of 23.6%. Suppose the Board of Directors of Baldwin mandates that management take measures to increase financial Leverage (=Assets/Equity)

This year Baldwin achieved an ROE of 23.6%. Suppose the Board of Directors of Baldwin mandates that management take measures to increase 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 ROE? Select Answer Baldwin ROE will decrease. Baldwin ROE will increase. Baldwin ROE will remain the same

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