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What effect would expect the action

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Question 1: This year Andrews achieved an ROE of 20.7%. Suppose next year the profit margin (Net Income/Sales) decreases. Assuming sales, assets and financial leverage remain the same next year, what effect would you expect this action to have on Andrews's ROE?

Select 1

  1. Andrews ROE will remain the same.
  2. Andrews ROE will decrease.
  3. Andrews ROE will increase.

Reference no: EM132484561

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