Business, 20.02.2020 01:00 kbell182005

Last year Central Chemicals had sales of $205,000, assets of $127,500, a profit margin of 5.3%, and anequity multiplier of 1.2. The CFO believes that the company could reduce its assets by $21,000without affecting either sales or costs.

Had it reduced its assets in this amount, and had the debt-to-assets ratio, sales, and costs remained constant, by how much would the ROE have changed?

Please explain how to solve step by step.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 22:50, emmanuelcampbel

What happens when a bank is required to hold more money in reserve?

Answers: 3

continue

Business, 22.06.2019 13:00, dolltan

Creation landscaping has 1,000 bonds outstanding that are selling for $1,280 each. the company also has 2,000 shares of preferred stock outstanding, currently priced at $27.20 a share. the common stock is priced at $37.00 a share and there are 28,000 shares outstanding. what is the weight of the debt as it relates to the firm's weighted average cost of capital?

Answers: 1

continue

Business, 22.06.2019 14:40, smithnakayla19

Increases in output and increases in the inflation rate have been linked to

Answers: 2

continue

Business, 22.06.2019 17:00, ocean11618

Oliver is the vice president of production at his company and has been managing the launch of new software systems. he worked with a team of individuals who were tasked to create awareness about a specific product and also to approach potential purchasers of the product. which department managers were part of oliver’s team?

Answers: 3

continue

You know the right answer?

Last year Central Chemicals had sales of $205,000, assets of $127,500, a profit margin of 5.3%, and...