LeCompte Corp

question 45

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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