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  3. last year "abc" company had $138442 of assets. $54

Last year "ABC" Company had $138442 of assets. $54966 of sales. S14054 of net income...

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Finance

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Last year "ABC" Company had $138442 of assets. $54966 of sales. S14054 of net income and an equity multiplier of 2.29075. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets to $90163. Sales, costs and net income would not be affected, and the firm would maintain the equity multiplier at the same level (2.29075). By how much would the reduction in assets will change the ROE value

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