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Business, 09.10.2021 14:00 hayleegahr

Last year Bell Corp had $200 of assets, $300 of sales, $25 of net income, and a liability-to-asset ratio of 60%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets to $180. Sales, costs, and net income would not be affected, and the firm would maintain the 60% liability-to-asset ratio. By how much would the reduction in assets improve the ROE

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Last year Bell Corp had $200 of assets, $300 of sales, $25 of net income, and a liability-to-asset r...
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