Question: Last year Altman Corp. had $ 1 5 6 , 0 0 0 of assets, $ 3 1 7 , 0 0 0 of sales,

Last year Altman Corp. had $156,000 of assets, $317,000 of sales, $21,000 of net income, and a liabilities-to-total-assets ratio of 50%.The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets to $136,000.Sales, costs, and net income would not be affected, and the firm would maintain the 50% liabilities-to-total assets ratio. By how much would the reduction in assets improve the ROE? Enter the improvement in ROE (difference in ROE after the improvement) as a percentage with two decimal places. For example, if the ROE increases from 8.50% to 9.65%, enter 1.15.

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