By how much must Vortex Labs reduce its total assets in order to increase its ROA from 8% to 10%, if its operating profit margin is 6% on sales of $5 million?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
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By how much must Vortex Labs reduce its total assets in
order to increase its ROA from 8% to 10%, if its operating
profit margin is 6% on sales of $5 million?
Transcribed Image Text:By how much must Vortex Labs reduce its total assets in order to increase its ROA from 8% to 10%, if its operating profit margin is 6% on sales of $5 million?
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