Profit Margin Assignment | Homework For You

  1. LeCompte Corp. has $321,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $520,000, and its net income after taxes was $20,655.  Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%.  What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?Get Finance homework help todayHomework For You

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