Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $195,000 and i
Posted: Fri Jul 01, 2022 7:51 am
Last year Mason Inc. had a total assets turnover of 1.33 and anequity multiplier of 1.75. Its sales were $195,000 and its netincome was $10,549. The CFO believes that the company could haveoperated more efficiently, lowered its costs, and increased its netincome by $5,250 without changing its sales, assets, or capitalstructure. Had it cut costs and increased its net income in thisamount, by how much would the ROE have changed?