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Which of the following statements is correct?a. Other things held constant, a reduction in the inventory turnover ratio will increase the ROE.b. If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will decrease.c. A reduction in inventories held would have no effect on the current ratio.d. An increase in inventories held would have no effect on the current ratio.e. If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.
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