Expected to support starting the business

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Sally is thinking about starting a new business. The company would require exist700,000 of assets, financed with 40% debt and 60% equity. She will go forward only if she thinks the firm can provide an ROE of at least 15.6%. Operating at a profit margin of 12%, what is the minimum amount of sales that must be expected to support starting the business?

Reference no: EM131576777

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Expected to support starting the business : what is the minimum amount of sales that must be expected to support starting the business?

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