What are the pros and cons of this approach

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Reference no: EM131050492

last conklin inc had a total assets turner of 1,33 and equity multiplier of 1.75 its sales were 295,000 and its net income was 10,600. the cfo believes the company could have operated more effiently, lowered its cost, and increase its net income by 10,250 without changing its sales, assets, or capital structure. a- had it cut its net income by 10,250, how much would the ROE have changed? b- if increasing sales or improving margin is not possible how can the firm improve its ROE? what are the pros and cons of this approach?

Reference no: EM131050492

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