By How Much Must a Firm Reduce Its Assets in Order

question 93

Multiple Choice

By how much must a firm reduce its assets in order to improve ROA from 10% to 12% if the firm's operating profit margin is 5% on sales of $4 million? Assume that the reduction in assets has no effect on sales or profit margin

• A) $240,000
• B) $333,333
• C) $400,000
• D) $516,167

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Definitions:

Preventive War

A military conflict initiated to prevent another party from acquiring a potentially threatening capability or launching an imminent attack.

Global War

An extensive conflict that involves multiple countries across different continents, often characterized by its worldwide scale and impact.

Bush Administration

The Bush Administration refers to the executive branch of the U.S. government under President George W. Bush, serving from 2001 to 2009.

Policy of Deterrence

A strategy intended to dissuade adversaries from engaging in an undesirable action through the threat of retaliation.