Last year Southern Chemicals had sales of $200, assets of $146. a profit margin of 5%, and an equity multiplier of 1.85. The CFO believes that the company could reduce its assets by $20 without affecting either sales or costs. Had it reduced its assets in this amount, and had the liability-to-asset ratio, sales, and costs remained constant, by how much would the ROE have changed? Select one: O a. 3.01% O b. 2.62% c. 2.01% d. 2.70% O e. 3.81% Last year Bell Corp had $200 of assets. $300 of sales. $25 of net income, and a liability-to-asset ratio of 60%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets to $150. Sales, costs, and net income would not be affected, and the firm would maintain the 60% liability to-asset ratio. By how much would the reduction in assets improve the ROE? Select one: a. 12.50% b. 16.6796 6. 37.50% d. 8.33% e. 10.42%