LeCompte Corp

question 94

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%

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