Consider a firm which forecasts that costs, assets, and current liabilities will all change proportionately with sales and the dividend payout ratio will remain fixed. How will the firm's ROE change as a result of a forecast 30% increase in sales? How will the individual components of ROE (the Du Pont identity) change? Why?

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The Answer of Consider a firm which forecasts that costs, assets, and current liabilities will all change proportionately with sales and the dividend payout ratio will remain fixed. How will the firm's ROE change as a result of a forecast 30% increase in sales? How will the individual components of ROE (the Du Pont identity) change? Why?

Consider a Firm Which Forecasts That Costs, Assets, and Current