Need answer the general accounting question please solve LeCompte Corp. has $312,900 of assets, and it uses only common equity capital(zero debt). Its sales for the last year were $620,000, and its net income aftertaxes was $24,655. Stockholders recently voted in a new management team thathas promised to lower costs and get the return on equity up to 15%. What profitmargin would LeCompte need in order to achieve the 15% ROE, holdingeverything else constant?a. 7.57%b. 7.95%c. 8.35%d. 8.76%e. 9.20%

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Answered: LeCompte Corp. has $312,900 of assets,…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

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Chapter15: Capital Structure Decisions

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Problem 11P: The Rivoli Company has no debt outstanding, and its financial position is given by the following...

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LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, and its net income after taxes was $24,655. 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? a. 7.57% b. 7.95% c. 8.35% d. 8.76% e. 9.20%
Litan Corp. has $450,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $850,000, and its net income after taxes was $32,500. The stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 18%. What profit margin would Litan Corp. need in order to achieve the 18% ROE, holding everything else constant?
Chang Corp. has $375,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $550,000, and its net income was $25,000. 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 the firm need in order to achieve the 15% ROE, holding everything else constant? Do not round your intermediate calculations. a. 10.13% b. 10.64% c. 10.23% d. 8.59% e. 9.92%
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Burger Corp has $500,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $600,000, and its net income after taxes was $25,000. 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 Burger need in order to achieve the 15% ROE, holding everything else constant?
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