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LeCompte Corp - holding everything else constant Total...

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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, 
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Unformatted text preview: holding everything else constant? Total assets = equity $312,900 Sales $620,000 Net income $24,655 Target ROE 15.00% Net income req'd to achieve target ROE $46,935 Profit margin needed to achieve target ROE 7.57%...
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