Business financ Multiple-choice

Only

QUESTION 6 Last year Rennie Industries had sales of$395 000, assets orsi 75,000 hich equals total i vested capital a profit margin of 53% and an equity multiplier of 1.2. The CFO believes that the co pany could reduce itsssets by ssi000 without affecting either sales or costs. The firm finances using only debt and common equity. Had it ROE have changed? Do not round its assets by this amount, and had the debt/total invested capital ratio, sales, and costs remained constant, how much would the your intermediate calculations. 732% 04 5.90%