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The board chair has asked management to develop some strategies to improve profit on the hospital's ROE. By how much would the 2017 ROE change

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The board chair has asked management to develop some strategies to improve profit on the hospital's ROE. By how much would the 2017 ROE change from each of these a. Vacant land is sold, and total assets decrease by $2.0 million. Net income would no the 2017 debt ratio. b. Debt is substituted for equity, and the debt ratio increases to 48 percent. Total asset would increase but better cost controls would offset the higher interest expense, and tl c. Lean management is implemented, and total expenses decrease by $0.5 million. To net assets would not change. d. Whatever strategy Melissa chooses, she is under pressure from the board to increa margin would be needed to achieve the 10% ROE, holding everything else constant

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