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12) (12 points) Northern Maple Syrup Inc., has total assets of $100 million. This is financed 40% by common equity and 60% by debt. Its

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12) (12 points) Northern Maple Syrup Inc., has total assets of $100 million. This is financed 40% by common equity and 60% by debt. Its average accounts recelvable balance is $40 million, and this represents a 70 day average collection period Northern's Treasurer has stated that he believes the company can halve Ils average collection period to 35 days without decreasing sales ($208.571 million) or net Income (37 million). Assume the funds received from reducing accounts receivable will be used to buy back stock. a. What will be the firm's new debt ratlo? b. What will be the firm's new Return on Equity? C Will this transaction affect the firm's current ratlo? In what direction, and why will it change

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