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J Peterman Corp. has $425,000 of assets, and it does not use any debt to finance their operations. Peterman's sales for the last year were
J Peterman Corp. has $425,000 of assets, and it does not use any debt to finance their operations. Peterman's sales for the last year were $625,000, and its net income was $50,000. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 20%. What profit margin would the firm need in order to achieve the 20% ROE, holding everything else constant
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