Chang Corp

question 37

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 $520,000,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 15.0%.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) 11.03%
• B) 8.76%
• C) 10.82%
• D) 11.14%
• E) 12.98%

---

Definitions:

Independence

The state or quality of being self-reliant and free from outside control.

Personal Achievement

The accomplishment of personal goals or the attainment of personal milestones.

Cultural Heritage

The legacy of physical artifacts and intangible attributes of a group or society passed down from previous generations, including customs, practices, places, objects, artistic expressions, and values.

Ethnicity

A social group that shares a common and distinctive culture, religion, language, or the like.