Chang Corp.has $375,000 of assets,and it uses only common equity capital (zero debt).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 up to 15.0%.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) 11.03%
B) 8.76%
C) 10.82%
D) 11.14%
E) 12.98%

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The Answer of Chang Corp.has $375,000 of assets,and it uses only common equity capital (zero debt).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 up to 15.0%.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) 11.03%
B) 8.76%
C) 10.82%
D) 11.14%
E) 12.98%