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Last year, LG Electronics Ltd. had $205,000 of assets, $18,250 of net income, a debt-to-total-assets ratio of 41% and $303,500 of sales. In an attempt
Last year, LG Electronics Ltd. had $205,000 of assets, $18,250 of net income, a debt-to-total-assets ratio of 41% and $303,500 of sales. In an attempt to provide a better return to its shareholder, the company reduce its assets by $152,500 without affecting either sales or costs. The company also manages to maintain its debt to equity ratio at the same level before the reduction in assets. By how much would the ROE increase?
5.45% | ||
5.19% | ||
4.69% | ||
4.93% |
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