XYZ Company has two divisions, A and B. Information for each division is as follows: A Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the operatting asset turnover for A?
XYZ Company has two divisions, A and B. Information for each division is as follows: A Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the operatting asset turnover for A?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![XYZ Company has two divisions, A and B. Information for each division is as follows:
A
Net earnings for division
P 40,000
P 260,000
Asset base for division
P100,000
P1,200,000
Target rate of return
15%
18%
Margin
10%
20%
Weighted average cost of capital
12%
12%
What is the operating asset turnover for A?
1. 0.15
2. 0.10
3.4.00
4. 2.50
0 1
O 2
O 3
O 4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F445086bb-0faf-42d9-a1c5-d72cde504338%2F4c578570-ba94-4879-9c9e-101bde17fa62%2Fgcpj2yl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:XYZ Company has two divisions, A and B. Information for each division is as follows:
A
Net earnings for division
P 40,000
P 260,000
Asset base for division
P100,000
P1,200,000
Target rate of return
15%
18%
Margin
10%
20%
Weighted average cost of capital
12%
12%
What is the operating asset turnover for A?
1. 0.15
2. 0.10
3.4.00
4. 2.50
0 1
O 2
O 3
O 4
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