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effect would you expect this action to have on Baldwin's ROE?
This year Baldwin achieved an ROE of 5.1%. Suppose next year the profit margin (Net Income/Sales) decreases. 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 decrease.
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Baldwin ROE will increase.