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Chang Corp. has $375,000 of assets, and it uses only common equity capital (zero debt).Its sales for the last year were $595,000, and its net
Chang Corp. has $375,000 of assets, and it uses only common equity capital (zero debt).Its sales for the last year were $595,000, 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?
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