Solution-By how much would the roe have changed

By how much would the roe have changed

Assignment Help Accounting Basics

Reference no: EM133190167

Question - Last year Central Chemicals had sales of $205,000, assets of $127,500, a profit margin of 5.3%, and an equity multiplier of 1.2. The CFO believes that the company could reduce its assets by $21,000 without affecting either sales or costs. Had it reduced its assets in this amount, and had the debt ratio, sales, and costs remained constant, by how much would the ROE have changed?

a. 1.81%

b. 2.02%

c. 2.44%

d. 2.22%

Reference no: EM133190167

Questions Cloud

Assignment on organizational communication : Distinguish between social science, interpretive, and critical/cultural theories of organizations. Identify a communication topic in organizations and describe

Advantages-benefits to society of global businesses : List and briefly describe 2 or 3 Advantages/Benefits to Society & 2 or 3 Disadvantages/Costs to Society of Global Businesses. For each item in your list, inclu

Determine the most effective strategy : Assume the MNC has an outstanding payment of $100,000 to your host country and a cash flow of $200,00 for the host country.

Calculate the unit cost of the handcrafted wooden train toys : Mr May wants to raise £20000 by getting new partner. Explain different methods Mr May could use to calculate the unit cost of the handcrafted wooden train toys

By how much would the roe have changed : Had it reduced its assets in this amount, and had the debt ratio, sales, and costs remained constant, by how much would the ROE have changed

Does the organisation provide consumers with training : Does the organisation provide consumers with training, How are consumers involved in service evaluation, is consumer participation discussed

Evaluate the profiles of entrepreneurs : Evaluate the profiles of both entrepreneurs based on the relevant strength of each profile. Rank each profile based on LinkedIn's 5 levels of profile strength:

Compute the present value of the lease payments : Larkspur's incremental borrowing rate is 3%, and the lessor's implicit rate is unknown. Compute the present value of the lease payments

Takeaways from managing strategically : A particularly effective way to wind up Managing Strategically is for students to step back and reflect on how the learnings from this course will impact their

User Account

All Pages

By how much would the roe have changed

Reference no: EM133190167

Reference no: EM133190167

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT