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Last year "ABC" Company had $165026 of assets, $96441 of sales, $13754 of net income,...

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Finance

Last year "ABC" Company had $165026 of assets, $96441 of sales, $13754 of net income, and an equity multiplier of 2.08713. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets to $87056. Sales, costs and net income would not be affected, and the firm would maintain the equity multiplier at the same level (2.08713). By how much would the reduction in assets will change the ROE value? Note: In writing the value of the change in ROE, make sure to write in a decimal format (rounded to nearest 4 digits), and not as a percentage. Answer:

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