Global Outlets Inc. expects profits to grow in line with revenues. Whi

Global Outlets Inc. expects profits to grow in line with revenues. Which of the following statements about efficiency and leverage would then be consistent with no change in ROE as a result of the growth in profitability?

A) No change in asset efficiency and an increase in leverage.
B) No change in asset efficiency and no change in leverage.
C) An increase in asset efficiency and no change in leverage.
D) An increase in asset efficiency and an increase in leverage.

ANSWER

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