Points: $10$

$2024$ Capsim Management Simulations, Inc.$$

This year Andrews achieved an ROE of $9\mathrm{.}9\%.$ 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.