The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.75, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change? a. 11.26% b. 11.85% c. 13.07% d. 13.72% e. 12.45%
+1
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.75, without affecting either sales or net income.