The Cardstock Manufacturing Division of the Pulp Paper Company reported the following results from the past year. Shareholders require a return of 5%. Management calculated a weighted-average cost of capital (WACC) of 2%. The company's corporate tax rate is 25%. Sales Operating income Total assets Current liabilities What is the division's sales margin? OA. 81.82% OB. 12.27% OC. 72.73% OD. 15% $900,000 135,000 $1,100,000 800,000

The Cardstock Manufacturing Division of the Pulp Paper Company reported the following results from the past year. Shareholders require a return of 5%. Management calculated a weighted-average cost of capital (WACC) of 2%. The company's corporate tax rate is 25%. Sales Operating income Total assets Current liabilities What is the division's sales margin? OA. 81.82% OB. 12.27% OC. 72.73% OD. 15% $900,000 135,000 $1,100,000 800,000

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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