Business financ Multiple-choice

Only

QUESTION5 33 points Save Answer Last year Ha ngton Inc. had sales of S125 and an income ofS19,000 and its year-end a ts we e S25 The firm's debt to tal apital ati wa is 0% The firm finances using only debt and common equity and its total assets equal total invested capital. Based on the DaPont equation, what was the ROE? Do not round your intermediate calculations. 11.09% b. 894% 903% 04 7A2% QUESTION 6 3.3 points Save Answer Last year Rennie Industries had sales of$395,000, assets of $175,000 which equals total invested capital a profit marg n of 53%, and an oquity multiplier of 1.2. The CFO believes that the company could reduce its assets by $51,000 without affecting either sales or costs. The firm finances using only debt and common equity. Had it reduced its assets by this amount, and had the debt/total invested capital ratio, sales, and costs remained constant, how much would the ROE have changed? Do your not round your intermediate calculations 5.25% 0663856 Oe7.32% d590%