apley Dental Supply Company has the following data: Net income: $240 Sales: $10,000 Total assets: $6,000 Debt ratio: 75% TIE ratio: 2.0 Current ratio: 1.2 If Tapley could streamline operations, cut operating costs, and raise net income to $300, without affecting sales or the balance sheet (the additional profits will be paid out as dividends), by how much would its ROE increase? Group of answer choices   3.00%   3.50%   4.00%   4.25%   5.50%

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ISBN:9781337635653
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Chapter2: Developing The Business Idea
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apley Dental Supply Company has the following data:

Net income: $240 Sales: $10,000 Total assets: $6,000
Debt ratio: 75% TIE ratio: 2.0 Current ratio: 1.2

If Tapley could streamline operations, cut operating costs, and raise net income to $300, without affecting sales or the balance sheet (the additional profits will be paid out as dividends), by how much would its ROE increase?
Group of answer choices
  3.00%
  3.50%
  4.00%
  4.25%
  5.50%
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