### Determining profit margin of burger company

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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 15%. What profit margin would Burger need in order to achieve the 15% ROE, holding everything else constant?

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