last year rosenberg corp had 195,000 of assets 18,775 of net income and a debt-to-ratio of 32%. now suppose the new CFO convinces the president to increase the debt ratio to 48%. sales and total assets will not be affected, but interest epenses would increase. However CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in capital structure improve the ROE? 4.36%, 4.57%, 4.80%, 5.04% or 5.30%
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