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Management
This year Baldwin achieved an ROE of 1.3%. 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 Baldwin's ROE? Select : 1 Baldwin ROE will remain the same. Baldwin ROE will increase. Baldwin ROE will decrease.

This year Baldwin achieved an ROE of 1.3%. 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 Baldwin's ROE? Select : 1 Baldwin ROE will remain the same. Baldwin ROE will increase. Baldwin ROE will decrease.

Foundations of Business (MindTap Course List)
Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section15.8B: Financial Ratios
Problem 1CC
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This year Baldwin achieved an ROE of 1.3%. 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 Baldwin's ROE?

Select : 1

  • Baldwin ROE will remain the same.
  • Baldwin ROE will increase.
  • Baldwin ROE will decrease.
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