Chang Corp

question 70

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 $550,000,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%.What profit margin would the firm need in order to achieve the 15% ROE,holding everything else constant? Do not round your intermediate calculations.

• A) 10.13%
• B) 8.59%
• C) 10.23%
• D) 10.64%
• E) 9.92%

---

Definitions:

Short Bone

Type of bones that are as wide as they are long, providing support and stability with little movement.

Flat Bone

Bones that have a flat, thin shape and are often involved in protecting internal organs or providing a large area for muscle attachment.

Tarsals

are the collection of seven bones in the foot situated between the bones of the lower leg and the metatarsals of the foot.

Short Bone

Bones that are about as long as they are wide, providing support and stability with little to no movement, typically found in the wrist and ankle.