### Debt-assets ratio-sales and costs remained constant

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##### Reference no: EM13882242

Last year Rennie Industries had sales of \$305,000, assets of \$175,000, a profit margin of 5.3%, and an equity multiplier of 1.2. The CFO believes that the company could reduce its assets by \$51,000 without affecting either sales or costs. Had it reduced its assets by this amount, and had the debt/assets ratio, sales, and costs remained constant, how much would the ROE have changed?

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