LeCompte Corp

question 47

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%

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Definitions:

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a repetitive and persistent pattern of behavior in which the basic rights of others or major age-appropriate societal norms or rules are violated.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification of officially recognized psychiatric disorders.

Developmental Chronology

The sequence and timing of particular behaviors and milestones in an individual's growth and development.

Childhood Disorders

Mental, emotional, or behavioral disorders that are diagnosed during childhood, affecting development, learning, and social interaction.