Problemlecompte corp has 312900 of assets and it uses only, Ask an Expert

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Problem:

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%.

Required:

Question: What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91168370

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