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3. (10 pts) Last year Blease Ine had a total assets turnover of 1.33 and an equity multiplier of 1.75 . Its sales were $205,000

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3. (10 pts) Last year Blease Ine had a total assets turnover of 1.33 and an equity multiplier of 1.75 . Its sales were $205,000 and its net income was $10,600. The firm finances using only debt and common equity and its total assets equal total invested eapital. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $10,250 without changing its sales, assets, or capital strueture. Had it cut costs and increased its net income by this amount, how much would the ROE have changed? Do not round your intermediate calculations. (Note: You must use the DuPont equation.)

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