Business strategy includes cost reduction initiatives

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Reference no: EM131575440

Dell's business strategy includes cost reduction initiatives such as lowering manufacturing costs, structural or design costs, and operating expenses. All else constant, a higher net income from any of these initiative will lead to

a. lower stockholder equity and increased leverage, raising the asset to equity ratio.

b. higher stockholder equity and decreased leverage, lowering the asset to equity ratio.

c. no change in the leverage of the firm.

Reference no: EM131575440

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