Current Attempt in Progress\ 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 raise the return on equity to

15.0%

. What profit margin would the firm need in order to achieve the

15%

ROE, holding everything else constant?\

10.42%

\

9.45%

\

10.94%

\

9.93%

\ Attempts: 0 of 1 used

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 raise the return on equity to 15.0%. What profit margin would the firm need in order to achieve the 15% ROE, holding everything else constant? 10.42% 9.45% 10.94% 9.93%