Chang Corp. has $875,000 of assets, and it uses only common equity capital (zero debt). Its sales last year were $795,000. Stockholders recently voted in a new board of directors that has promised to lower costs and get the return on equity up to 7.0%. What profit margin would the firm need in order to achieve the 7% ROE. holding everything else constant? Hint: Use the DuPont Equation, setting BVE- $875,000. a. 7.7% b. 7.3% c. 6.1% d. 6.9% e. 6.5%

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