Burger Corp has $500,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $600,000, and its net income after taxes 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 9.6%. What profit margin would Burger need in order to achieve the 9.6% ROE, holding everything else constant?

Select one:

a. 9.5%

b. 12.5%

c. 11%

d. 8%

e. 14%