Questions MC.04.105 11 ENGAGE MINDTAP 3: Chapter 4 Knowledge Check Assignment: Unit 3: Chapter 4 Knowledge Check 12. 13. b/ui/evo/index.html?deploymentid=6033852334008692136118495980&eISBN 9780357517642&id=1937418146&snapshotid=37207888 14. 15. 16. 17. 18. O O X OOO 20. O 19. O MindTap-Cengage Learni x 22 Links Content O Icon Key X X MindTap-Cengage Learn Save + Q Search th Assignment Score: 60.00 % Submit Assignment for Grading Question 13 of 20 Check My Work Last year Ann Arbor Corp had $250,000 of assets (which equals total invested capital), $305,000 of sales, $20,000 of net income, and a debt-to-total-capital ratio of 37.5%. The new CFO believes that a new computer program will enable the company to reduce costs and thus raise net income to $33,000. The firm finances using only debt and common equity. Assets, total invested capital, sales, and the debt-to-capital ratio would not be affected. By how much would the cost reduction improve the ROE? Do not round your intermediate calculations. O a. 5.20 p.p. Ob. 8.32 p.p O c. 11.09 p.p. O d. 13.87 p.p. Oe. 12.80 p.p. Check My Work S 10:12 PM