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Your sister is thinking about starting a new business. The company would require $ 4 2 5 , 0 0 0 of assets, and it

Your sister is thinking about starting a new business. The company would require $425,000 of assets, and it would be financed entirely with common stock. She will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13.5%. How much net income must be expected to warrant starting the business?
a. $49,916
b. $63,686
c. $66,555
d. $57,375
e. $55,654

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