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ssume the Hiking Shoes division of the apital is 5%. Its effective tax rate is 35%. Sales Operating income Total assets Current liabilities What is the division's capital turnover? OA. 5 OB. 1.25 OC. B OD. 10 $5,000,000 500,000 4,000,000 800,000

ssume the Hiking Shoes division of the apital is 5%. Its effective tax rate is 35%. Sales Operating income Total assets Current liabilities What is the division's capital turnover? OA. 5 OB. 1.25 OC. B OD. 10 $5,000,000 500,000 4,000,000 800,000

FINANCIAL ACCOUNTING
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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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 5%. Its effective tax rate is 35%. Sales Operating income Total assets Current liabilities What is the division's capital turnover? $5,000,000 500,000 4,000,000 800,000 OA. 5 OB. 1.25 OC. B OD. 10
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 10% and the weighted average cost of capital is 5%. Its effective tax rate is 35%. Sales Operating income Total assets Current liabilities What is the division's capital turnover? $5,000,000 500,000 4,000,000 800,000 OA. 5 OB. 1.25 OC. B OD. 10
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