QUESTION 6 Last year Lowell Inc. had a total assets turnover of 1.40 and an equity multiplier of 1.75. Its sales were $295,000 and its net income was $10,600. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income to $20,850 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income as expected, how much would the ROE have changed? O 7.55% 0 8.38% 0 8.09% 0 8.90% 0 8.51% 1 points Save Answer QUESTION 8 Bank A offers to lend you $100,000 at a nominal rate of 6%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Bank B also offers to lend you the $100,000, but it will charge 6.40%, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks? O 0.40% O 0.13% O 0.23% 0.30% O 0.33%