Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 5%. Its effective tax rate is 35%. Sales $14,000,000 Operating income 3,500,000 Total assets 2,000,000 770,000 Current liabilities What is the division's sales margin? O A. 175.00% O B. 25.00% OC. 38.50% O D. 700.00%

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• The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the return on investment for the division? 1. 2% 2. 4% 3. 8% 4. 10% О1 O 2 3 O 4

Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: Sales $8,200,000 Operating income $2,788,000 Total assets $3,280,000 Current liabilities $400,000 Required rate of return 14% Weighted average cost of capital 3% What is the Photocopier Division's residual income?   Question 16 options:   $459,200   $2,328,800   $3,247,200   $2,689,600

Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is 30%. Its effective tax rate is 40%. Sales Operating income Total assets Current liabilities What is the division's Residual Income (RI)? OA. $100,000 O B. $4,400,000 Ⓒ C. $700,000 O D. $280,000 $11,000,000 1,100,000 4,000,000 780,000

Assume division 1 of the XYZ Company had the following results last year (in thousands) Management's required rate of return is 81% and the weighted average cost of capital is 6% Its effective tax rate is 30% Sales$ 9,000,000 Operating expenses $ 1,200,000 Operating income $1,500,000 Total revenue$ 2,000,000 Total assets $ 12,000,000 Current liabilities$ 5,000,000 What is the division's residual income? $100,000 $200,000 $500, 000 $ 540,000 Assume division 1 of the XYZ Company had the following results last year (in thousands). Management's required rate of return is 8% and the weighted average cost of capital is 6% effective tax rate is 30% . \table [[Sales, $9, 000, 000

ABC Company is a service center with the following operating data: Sales P 450,000 Operating Income 25,000 Net Income after tax 8,000 Average assets invested 500,000 Shareholders' equity 200,000 Minimum required ROI 6% Based on the above information, which one of the following statements is correct? ABC Company has a 1. Return on investment of 4% 2. Residual income of (P5,000) 3. Return on investment of 1.6% 4. Residual income of (P22,000). O 1 O 2 O 3 4