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[SOLVED] This year Andrews achieved an ROE of 21.6%. Suppose the Board of Directors of Andrews mandates that management take measures to decrease financial Leverage (Assets/Equity)

This year Andrews achieved an ROE of 21.6%. Suppose the Board of Directors of Andrews 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 Andrews's ROE?

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  •  Andrews ROE will decrease
  •  Andrews ROE will remain the same

 Andrews ROE will increase



honeyd


24-04-21 | 13:32:18

• Andrews ROE will decrease

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