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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
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: (2) By means of the cash obtained under (1), management will repay (part of POOR's) long-term financial debts; and 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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