Uses only common equity capital

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GreasySteak Corp. has $350,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $600,000, and its net income after taxes was $30,000. 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 GreasySteak need in order to achieve the 15% ROE, holding everything else constant? Please show work

Reference no: EM131197795

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