True or false: if stock prices follow a random walk, a. successive stock prices are not related. b. successive stock price changes are not related. c. stock prices fluctuate above and below a normal long-run price. d. the history of stock prices cannot be used to predict future returns to investors.

Chang corp. has $375,000 of assets, and it uses only common equity capital (zero debt). its sales for the last year were $595,000, and its net income 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 15.0%. what profit margin would the firm need in order to achieve the 15% roe, holding everything else constant? a. 9.45%b. 9.93%c. 10.42%d. 10.94%e. 11.49%