Had it reduced its assets in this amount and had the debt


Last year Southern Chemicals had sales of $200,000, assets of $125,000, a profit margin of 5.15%, and an equity multiplier of 1.85. The CFO believes that the company could reduce its assets bby $25,000 without affecting either sales or costs. Had it reduced its assets in this amount, and had the debt ratio, sales, and cost remained constant, by how much would the ROE changed?

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Finance Basics: Had it reduced its assets in this amount and had the debt
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