Last Year Blease Inc Had a Total Assets Turnover of 1.33

question 17

Multiple Choice

Last year Blease Inc had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $295,000 and its net income was $10,600. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $10,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income by this amount, how much would the ROE have changed?

• A) 6.55%
• B) 7.28%
• C) 8.09%
• D) 8.90%
• E) 9.79%

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Definitions:

Effective Communication

The process of exchanging information between individuals in such a way that the intended message is accurately conveyed and understood.

Communicate Externally

The process of sharing information and maintaining relationships with individuals or entities outside an organization.

Employee's Career

The progression and development of an individual's work life and occupation over time within or across companies.

Complex Ideas

Concepts or thoughts that are intricate and complicated, often requiring detailed explanation or analysis to be fully understood.