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This year Company P achieved an ROE of 14.8%. Suppose management takes measures that decrease Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and

This year Company P achieved an ROE of 14.8%. 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?

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Company P ROE will decrease

Company P ROE will remain the same

Company P ROE will increase

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