Computation of profit margin that the Firm needs in order to achieve the promised ROE hol

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Computation of profit margin that the Firm needs in order to achieve the promised ROE, holding everything else constant.

Burger Corp has $500,000 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 $25,000. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 8.5%. What profit margin would Burger need in order to achieve the promised ROE, holding everything else constant?

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Accounts homework help college homework high school homework Financial Statement Analysis Burger Corp. assets only common equity capital zero debt sales last year net income after taxes Stockholders new management team lower costs return on equity profit margin