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Question 9 3 pts Last year Nash Corp had $ 3 0 5 , 0 0 0 of assets ( which is equal to its
Question pts Last year Nash Corp had $ of assets which is equal to its total invested capital $ of sales, $ of net income, and a debttototalcapital ratio of The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets and total invested capital to $ The firm finances using only debt and common equity. Sales, costs, and net income would not be affected, and the firm would maintain the same capital structure but with less total debt By how much would the reduction in assets improve the ROE? A B C D E
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pts
Last year Nash Corp had $ of assets which is equal to its total invested capital $ of sales, $ of net income, and a debttototalcapital ratio of The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets and total invested capital to $ The firm finances using only debt and common equity. Sales, costs, and net income would not be affected, and the firm would maintain the same capital structure but with less total debt By how much would the reduction in assets improve the ROE?
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