what effect would you expect this new Leverage policy will have on Baldwin's ROE?

This year Baldwin achieved an ROE of 0.5%. Suppose the Board of Directors of Baldwin mandates that management take measures to decrease financial Leverage (Assets/Equity) next year. Assuming Sales, Profits, and Assets remain the same next year, what effect would you expect this new Leverage policy will have on Baldwin's ROE? Select : 1 Submit Answer Baldwin ROE will decrease Baldwin ROE will remain the same Baldwin ROE will increase