Question
Assume that inventories are 34% of current assets. A) Consider the typical company and assume that it has a ratio What impact will a 25%
Assume that inventories are 34% of current assets.
A) Consider the typical company and assume that it has a ratio 
What impact will a 25% decrease in inventory have on the ROI? What percent decrease in inventories is needed to increase the ROI by 10%?
B) Develop an algebraic expression for the impact on ROI of an x% decrease in inventories when 
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FINA 6201 Financial Theory And Policy Emery Trahan
Authors: Emery Trahan
1st Edition
1609270754
