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Suppose Beer's management concluded that it has $500 of redundant assets that it could sell for $500, which would be used to reduce common equity.

None of the income statement items would be affected, its total current liabilities will remain at $250, and its long-term debt will remain at $950.

Beer's capital structure consists of only debt and common equity.

After this change, using the DuPont equation what would be Beer's forecasted ROE? Round the ROE to the nearest whole percent.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92840738

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