The Board chair has asked management to develop some strategies to improve profitability and estimate the impact of the strategies on the hospitals return on equity (ROE). By how much would the 2021 ROE change from each of these strategies? (Hint: The case model cannot be used to answer these questions.) (Gapenski's Cases in healthcare finance 7th edition)

a.	Vacant land is sold at a loss and total assets decreases by $2.0 million. Net
	income would not be affected and the Board wants to maintain the 2021 debt
	ratio.
b.	Equity is substituted for debt and the debt ratio falls to 48 percent. Total assets
	would not be affected. Interest expense would decrease but inflation would offset
	the lower interest expense and thus net income would not change.
c.	LEAN management is implemented and total expenses decrease by $0.5 million.
	Total revenue, total assets, and total liabilities & net assets would not change.
d.	Whatever strategy Melissa chooses, she is under pressure from the Board to
	increase return on equity to at least 14 percent. What total margin would be
	needed to achieve the 14% ROE, holding everything else constant?