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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 19%. What profit margin would LeCompte need in order to achieve the 19% ROE, holding everything else constant?
a. 13.665% b. 12.115% *c 11.934% d. 10.775%
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