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B&B Corp. has $ 5 1 2 , 0 0 0 of assets, and it uses only common equity capital ( zero debt ) .

B&B Corp. has $512,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $480,000, and its net income was $45,000. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 18.0%. What profit margin would the firm need in order to achieve the 18% ROin, holding everything else constant? Do not round your intermediate calculations.
18.00%
16.38%
17.25%
19.20%
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