This year Andrews achieved an ROE of 3.1%. Suppose next year the profit margin (Net Income/Sales) increases. Assuming sa

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answerhappygod
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This year Andrews achieved an ROE of 3.1%. Suppose next year the profit margin (Net Income/Sales) increases. Assuming sa

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This year Andrews achieved an ROE of 3.1%. Suppose next year theprofit margin (Net Income/Sales) increases. Assuming sales, assetsand financial leverage remain the same next year, what effect wouldyou expect this action to have on Andrews's ROE?
Andrews ROE will remain the same.
Andrews ROE will increase.
Andrews ROE will decrease.
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