What profit margin would hoffmeister need to achieve

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Question - Hoffmeister Inc. has $2,800,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $2,016,000, and its net income was $160,000. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 18%. What profit margin would Hoffmeister need to achieve the 18% ROE? Assume that the new actions will have no effect on total assets and sales, and it will not change the company's determination to use 100% equity to finance its operations.

Reference no: EM133104588

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