This year Andrews achieved an ROE of 7.8%. Suppose next year the profit margin (Net Income/Sales)...

 

Transcribed Image Text:

This year Andrews achieved an ROE of 7.8%. Suppose next year the profit margin (Net Income/Sales) increases. 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 Andrews ROE will remain the same. Andrews ROE will increase. Andrews ROE will decrease. Save Answer This year Andrews achieved an ROE of 7.8%. Suppose next year the profit margin (Net Income/Sales) increases. 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 Andrews ROE will remain the same. Andrews ROE will increase. Andrews ROE will decrease. Save Answer

Answer rating: 100% (QA)

In case profit margin is increased next year the Andrew wo... View the full answer