LeCompte Corp

question 11

Multiple Choice

LeCompte Corp.has $312,900 of assets, and it uses only common equity capital 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%

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Definitions:

Growth

An increase in some measured quantity, such as size, number, value, or strength.

Manifest Needs Theory

Developed by David McClelland to show that all people have needs that motivate them in life and on the job. These three needs include power needs, affiliation needs, and achievement needs.

Hierarchy of Needs

A motivational theory in psychology proposed by Abraham Maslow, which outlines a five-tier model of human needs, from basic physiological needs to self-actualization.

Effective Climate

An environment or atmosphere that positively influences productivity and satisfaction among individuals within a group or organization.