Multiple Choice
LeCompte Corp.has $312,900 of assets, and it uses only common equity capital (zero debt) .Its sales for the last year were $620,000, and its net income after taxes was $24,655.Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%.What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?
A) 7.57%
B) 7.95%
C) 8.35%
D) 8.76%
E) 9.20%
Correct Answer:
Verified
Correct Answer:
Verified
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