QUESTION $26$

Money Corp. has $$525,000$ of assets, and it uses only common equity capital $($zero debt$).$ Its sales for the last year were $$800,000,$ and its net income was $$32,000.$ Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity$($ROE$)$ up to $12\%.$

What Net Income will be required to meet this ROE goal?

$$63,000$

$$25,000$

$$16,406$

$$275,000$

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