last year Company had 161468 of assets, 86233 of sales,16976 of net income and an...
80.2K
Verified Solution
Link Copied!
Question
Finance
last year Company had 161468 of assets, 86233 of sales,16976 of net income and an equity multiplier of 2.98696. The new CFO believes the has excessive fixed assets and inventory that could be sold enabling it to reduce its total assets to 92336. Sales, costs and net income would not be affected and the firm would maintain the equity multiplier the same level 2.98696) By how much would the reduction in assets will change the ROE value?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
