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4. Last year Whelton Inc had a total assets turnover of 1.75 and an equity multiplier of 2.4 . Whelton's sales were $200,000 and net

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4. Last year Whelton Inc had a total assets turnover of 1.75 and an equity multiplier of 2.4 . Whelton's sales were $200,000 and net income was $10,000. The CFO believes that the company could have operated more efficiently, lowered its costs and increased its net income by $4,000 without changing its sales, assets, or capital structure. How much would Whelton's ROE change if the firm was able cut costs and increase net income by $4,000 this year? ( 2 points)

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