Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of...

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Last year Mason Inc. had a total assets turnover of 1.33 and anequity multiplier of 1.75. Its sales were $150,000 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?
Select the correct answer.
a. 8.15%
b. 6.95%
c. 9.35%
d. 8.75%
e. 7.55%

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Last year Mason Inc. had a total assets turnover of 1.33 and anequity multiplier of 1.75. Its sales were $150,000 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?Select the correct answer.a. 8.15%b. 6.95%c. 9.35%d. 8.75%e. 7.55%