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AAA Inc has the following balance sheer and income statement data: The bew CFO thinks that inventories are excessive and could be lowered sufficiently to

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AAA Inc has the following balance sheer and income statement data: The bew CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry aserage. 2.50, without affecting either sales of net income. Assuming that inventories are sold off and sot replaced to get the curreat ratio to the target level, and that the funds generated are used to buy back commoa stock at book value, by how mach would the ROE change? Do sot round your interraediate calculations. a. 11.16% b. 10.13% c. 9.7946 d. 13,66\% e. 10.809

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