What must happen to asset turnover to leave ROE unchanged from its original 16% level if the operating profit margin is reduced from 8% to 6% and the leverage ratio increases from 1.2 to 1.6? Asset turnover must:

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Original:ROE = leverage ratio × asset turnover × operating profit margin0.16 = 1.2 × asset turnover × 0.08Asset turnover = 1.67New:0.16 = 1.6 × asset turnover × 0.06Asset turnover = 1.67

What Must Happen to Asset Turnover to Leave ROE Unchanged