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%

---

Definitions:

Needle Biopsy

A minimally invasive procedure where a small sample of tissue is collected for examination using a needle.

Biofeedback

A method that enables a person, usually with the help of electronic equipment, to learn to control otherwise involuntary bodily functions.

Shark Cartilage

A dietary supplement made from the dried and powdered cartilage of sharks, often claimed to help with a variety of conditions without solid scientific backing.