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 Operating income Total assets Current liabilities What is the division's Return on Investment (ROI)? O A. 68.57% OB. 171.43% OC. 40% OD. 22.57% $6,000,000 2,400,000 3,500,000 790,000

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 Operating income Total assets Current liabilities What is the division's Return on Investment (ROI)? O A. 68.57% OB. 171.43% OC. 40% OD. 22.57% $6,000,000 2,400,000 3,500,000 790,000

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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