Author Question: LeCompte Corp. has $406,000 of assets, and it uses only common equity capital (zero debt). Its sales ... (Read 87 times)

urmomsucks · **on:** Aug 7, 2023

Question 1

Last year, Vaughn Corp. had sales of $462,000 and a net income of $20,540, and its year-end assets were $331,000. The firm’s total-debt-to-total-assets ratio was 46.0%. Based on the DuPont equation, what was Vaughn’s ROE?

◦

10.05%

◦

11.53%

◦

12.65%

◦

13.78%

Question 2

LeCompte Corp. has $406,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $750,000, and its net income after taxes was $30,200. Shareholders 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 LeCompte need in order to achieve the 18% ROE, holding everything else constant?

◦

9.52%

◦

9.60%

◦

9.74%

◦

9.88%

athenaheim · **Reply #1 on:** Aug 7, 2023

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 44% of students answer this correctly