Chang Corp

question 20

Multiple Choice

Chang Corp.has $375,000 of assets,and it uses only common equity capital (zero debt) .Its sales for the last year were $595,000,and its net income was $25,000.Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15.0%.What profit margin would the firm need in order to achieve the 15% ROE,holding everything else constant?

• A)9.45%
• B)9.93%
• C)10.42%
• D)10.94%
• E)11.49%

---

Definitions:

Farmers' Grievances

Complaints by farmers about issues affecting their livelihood, such as unfair prices, high taxes, and lack of governmental support.

Late Nineteenth Century

Refers to the period from 1870 to 1899, characterized by industrialization, urbanization, and significant social and political changes globally.

Redress

The act of correcting an injustice or receiving compensation for wrongs or injuries.

Harvest Strategy

A business approach focused on extracting maximum profits from a product, division, or business segment with minimal investment.