This year Baldwin achieved an ROE of 1

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This year Baldwin achieved an ROE of 1.6%. Suppose management takes measures that increase 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 Baldwin's ROE?

A. Baldwin ROE will remain the same.

B. Baldwin ROE will decrease.

C. Baldwin ROE will increase.