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James & Co.'s management is under pressure by its board to improve the company's return on equity (ROE) to match that of its peers in

James & Co.'s management is under pressure by its board to improve the company's return on equity (ROE) to match that of its peers in the industry.It has sales of $800 million, net income of $40 million, assets of $2 billion, and debt of $1.5 billion.In order to achieve an ROE of 12%, what minimum profit margin should management target, assuming assets, sales, and debt remains constant?

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