Assume division 1 of the XYZ Company had the following results last year (in thousands)
Management's required rate of return is 8% and the weighted average cost of capital is 6%. Its
effective tax rate is 30%.
Sales $5,000,000
Operating income $1,000,000
Total assets $10,000,000
Current liabilities $500,000
What is the division's capital turnover?
A) 5% B) 20% C) 10% D) 50%
D
Business
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