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  3. last year company had 161468 of assets, 86233 of s

last year Company had 161468 of assets, 86233 of sales,16976 of net income and an...

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Finance

last year Company had 161468 of assets, 86233 of sales,16976 of net income and an equity multiplier of 2.98696. The new CFO believes the has excessive fixed assets and inventory that could be sold enabling it to reduce its total assets to 92336. Sales, costs and net income would not be affected and the firm would maintain the equity multiplier the same level 2.98696) By how much would the reduction in assets will change the ROE value?

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