This year Company P achieved an ROE of 14. Suppose management takes measures that decrease Asset turnover (Sales/Total Assets) next year.

This year Company P achieved an ROE of 14.8%. 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

Company P ROE will decrease

Company P ROE will remain the same

Company P ROE will increase