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This year Chester achieved an ROE of 5.4%. Suppose management takes measures that decrease Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and financial
This year Chester achieved an ROE of 5.4%. 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 Chester's ROE?Select: 1
A.Chester ROE will remain the same
B.Chester ROE will decrease
C. Chester ROE will increase
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