km$/$board$-$query

comp:xm

$(25$SS$-$Full$)$

Welcome Alexis Nichols

BUSINESS

Points: $10$

$2025$ Capsim Management Simulations, Inc.,

This year Baldwin achieved an ROE of $5\mathrm{.}3\%.$ Suppose next year the profit margin $($Net Income$/$Salos$)$ increases. Assuming sales, assets and financial leverage remain the same next year, what effect would you expect this action to have on Baldwin's ROE?

Select: $1$

Baldwin ROE will remain the same.

Baldwin ROE will increase.

Baldwin ROE will decrease.