[SOLVED]This year Andrews achieved an ROE of 18.6%. Suppose management takes measures that decrease Asset turnover (Sales/Total Assets)
This year Andrews achieved an ROE of 18.6%. Suppose management takes measures that decrease Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Andrews's ROE?
Select : 1
Submit Answer
- Andrews ROE will remain the same
- Andrews ROE will increase
- Andrews ROE will decrease
