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Last year Kruse Corp had $380,000 of assets (which is equal to its total invested capital) ,$403,000 of sales,$28,250 of net income,and a debt-to-total-capital ratio of 39%.The new CFO believes the firm has excessive fixed assets and inventory that could be sold,enabling it to reduce its total assets and total invested capital to $252,500.The firm finances using only debt and common equity.Sales,costs,and net income would not be affected,and the firm would maintain the same capital structure (but with less total debt) .By how much would the reduction in assets improve the ROE? Do not round your intermediate calculations.
Edema
An excessive buildup of fluid in body tissue.
Vessels
Structures such as veins, arteries, and ducts that carry fluids like blood or lymph through the body.
Chronic Fatigue Syndrome
A complex disorder characterized by extreme fatigue that cannot be explained by any underlying medical condition.
Tender Lymph Nodes
Lymph nodes that are swollen and painful, often indicating an infection or inflammation in the body.
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