Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. please help quickly! timed repsonse less than 20 m

PLEASE HELP QUICKLY! TIMED REPSONSE LESS THAN 20 MINUTES PLEASE ...

60.1K

Verified Solution

Question

Finance

PLEASE HELP QUICKLY! TIMED REPSONSE LESS THAN 20 MINUTES PLEASE

image

image

Jordan Inc has the following balance sheet and income statement data: The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.15 , without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target letel, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change? Do not round your intermediate calculations. The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.15 , without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change? Do not round your intermediate calculations. 24.08% 19.50% 29.86% 29.38% 25.04%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students