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Chang Corp. has $ 3 7 5 , 0 0 0 of assets, and it uses only common equity capital ( zero debt ) .

Chang Corp. has $375,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $550,000, 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%. What profit margin would the firm need to achieve the 15% ROE, holding everything else constant? Do not round your intermediate calculations.
a.13.64%
b.6.67%
c.22.00%
d.10.23%
e.4.55%

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