In: Finance
Last year Mason Inc. had a total assets turnover of 1.33 and an
equity multiplier of...
Last year Mason Inc. had a total assets turnover of 1.33 and an
equity multiplier of 1.75. Its sales were $150,000 and its net
income was $10,549. The CFO believes that the company could have
operated more efficiently, lowered its costs, and increased its net
income by $5,250 without changing its sales, assets, or capital
structure. Had it cut costs and increased its net income in this
amount, by how much would the ROE have changed?
Select the correct answer.