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%

Distinguish between solicited and unsolicited proposals, and internal and external proposals.

Recognize the importance of ethical considerations and risk assessment in making recommendations.

Understand the role of problem identification and hypothesis formulation in analytical reports.

Develop an appreciation for different types of analytical reports and their purposes.

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Definitions:

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly used to estimate the accuracy of sample mean as a predictor of the population mean.

Pooled Estimate

Combining estimates from different populations to obtain a single estimate that is more accurate and has a higher power due to a larger sample size.

Environmental Protection Agency

A U.S. government agency tasked with protecting human health and the environment through regulations and various initiatives.

Air Quality Standards

Regulations that define the maximum acceptable concentration of pollutants in the air, set to protect human health and the environment.