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:

Strength Of Sensation

The intensity with which a sensory input is felt or experienced by an individual.

Psychological Intensity

The degree of strength or force of psychological phenomena, such as emotions, motivations, or experiences.

Stimulus Intensity

The magnitude or strength of a stimulus, which can influence the reaction or response it elicits.

Logarithm

The power to which a base number must be raised to produce a given number.