How much greater would be the return on equity

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Acme Inc had a total assets turnover of 1.33 and an equity multiplier of 1.75. Although it had net income of $10,600 on $295,000 of sales, a private equity firm thinks it could have had a net income $10,250 greater just by cutting costs. If this is possible, how much greater would be the return on equity? Hint: DuPont! 6.55% 7.28% 8.09% 8.90% 9.79%

Reference no: EM131013387

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How much greater would be the return on equity : Acme Inc had a total assets turnover of 1.33 and an equity multiplier of 1.75. Although it had net income of $10,600 on $295,000 of sales, a private equity firm thinks it could have had a net income $10,250 greater just by cutting costs. If this is p..

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