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Your boss asks you to compute the possible impact of: an increase in leverage on RECs ROE. Using the Dupont Formula, evaluate the impact on

Your boss asks you to compute the possible impact of: an increase in leverage on RECs ROE. Using the Dupont Formula, evaluate the impact on RECs 2007 ROE if it increased its Leverage Ratio to 3.0?
Decrease of 9.1%
Increase of 9.6%
None of the choices
Decrease of 9.6%
Increase of 9.1%

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