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 $3\mathrm{.}0?$

Decrease of $9\mathrm{.}1\%$

Increase of $9\mathrm{.}6\%$

None of the choices

Decrease of $9\mathrm{.}6\%$

Increase of $9\mathrm{.}1\%$