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 30% and the weighted average cost of capital is 15%. Its effective tax rate is 30%. Sales $15,000,000 Operating income 4,500,000 Total assets 4,000,000 Current liabilities 800,000 What is the division's capital turnover?
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 30% and the weighted average cost of capital is 15%. Its effective tax rate is 30%. Sales $15,000,000 Operating income 4,500,000 Total assets 4,000,000 Current liabilities 800,000 What is the division's capital turnover?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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 30% and the weighted average cost of capital is 15%. Its effective tax rate is 30%.
Sales $15,000,000
Operating income 4,500,000
Total assets 4,000,000
Current liabilities 800,000
What is the division's capital turnover?
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