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Because of ongoing problems, the Board of Directors decides to replace the entire top management of company POOR. In an attempt to enhance the performance

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Because of ongoing problems, the Board of Directors decides to replace the entire top management of company POOR. In an attempt to enhance the performance of POOR's shares on the stock market, new management's primary (short-term) concern is to increase return on assets (ROA). New management wants to increase ROA by: (1) Selling some redundant fixed assets. The assumption is that they will be able to sell these assets for a price that equals their net book value; REQUIRED For each of these three suggestions, mention whether they would (or could) lead to an increase of ROA. In addition, explain your answer (i.e., discuss the impact on the numerator and the impact on the denominator). Because of ongoing problems, the Board of Directors decides to replace the entire top management of company POOR. In an attempt to enhance the performance of POOR's shares on the stock market, new management's primary (short-term) concern is to increase return on assets (ROA). New management wants to increase ROA by: (1) Selling some redundant fixed assets. The assumption is that they will be able to sell these assets for a price that equals their net book value; REQUIRED For each of these three suggestions, mention whether they would (or could) lead to an increase of ROA. In addition, explain your answer (i.e., discuss the impact on the numerator and the impact on the denominator)

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