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Author Question: Last year, Rosenberg Corp. had $247,000 of assets, $21,580 of net income, and a debt-to-total-assets ... (Read 83 times)

elarge

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on: Aug 7, 2023
Last year, Rosenberg Corp. had $247,000 of assets, $21,580 of net income, and a debt-to-total-assets ratio of 38%. Now suppose the new CFO convinces the president to increase the debt ratio to 52%. Sales and total assets will not be affected, but interest expense would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE?

◦

4.05%


◦

4.11%


◦

4.29%


◦

4.30%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by elarge on Aug 7, 2023

furthoh

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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elarge

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

marict

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Reply 3 on: Yesterday
:D TYSM

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