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Last year Ronnie industries had sales of $400,000 assets of $175,000 a profit margin of 5.3% and a equity multiplier of 1.2. The CFO believes

Last year Ronnie industries had sales of $400,000 assets of $175,000 a profit margin of 5.3% and a equity multiplier of 1.2. The CFO believes that the company could reduce its assets by $51,000 without affecting net income sales or equity multiplier. Had it reduced its assets by this amount how much would the ROE have changed?

A. 6.33% B.5.01% C.5.45% D.4.90% E.5.98%

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