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.

Baldwin ROE will increase.

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