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Last year, Candle Corp had $ 2 0 0 of assets, $ 3 0 0 of sales, $ 2 0 of net inome, and a

Last year, Candle Corp had $200 of assets, $300 of sales, $20 of net inome, and a liability to asset ration of 40%. The new CFO believes a new computer program will enable it to reduce costs and thus raise net income to $30.8. Assets, sales, and the liability to asset ratio would not be affected. By how much would the cost reduction improve the ROE?

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