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%

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%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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