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Last year Central Chemicals had sales of $385,000 a sets of $127.500, a profit margin of 5.3%, and an equity multiplier of 1.2 The CFO
Last year Central Chemicals had sales of $385,000 a sets of $127.500, a profit margin of 5.3%, and an equity multiplier of 1.2 The CFO believes that the company could reduce its assets by $21,000 without affecting either sales or costs. Had it reduced its assets in this amount, and had the debt-to-assets ratio, sales, and costs remained constant, by how much would the ROE have changed? Select the correct answer a. 4.66% O b. 4.08% c. 4.37% d. 3.79% e. 4.95% 0
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