Business, 21.02.2020 05:59 israel8471

New Doors Corp. has $375,000 of total assets, and it uses $187,500 of total shareholder's equity capital. Its sales for the last year were $520,000, 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 (ROE) up to 15.0%. What profit margin (PM) would the firm need in order to achieve the 15% ROE, holding everything else constant?

a. 5.41%
b. 8.11%
c. 9.41%
d. 10.71%
e. 12.66%

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New Doors Corp. has $375,000 of total assets, and it uses $187,500 of total shareholder's equity cap...

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