Question
#19 Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return
#19
Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is
15%
and the weighted average cost of capital is
25%.
Its effective tax rate is
25%.
| Sales | $ $9,000,000 |
| Operating income | 3,150,000 |
| Total assets | 3,000,000 |
| Current liabilities | 850,000 |
What is the division's sales margin?
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Auditing Information Security A Complete Guide
Authors: Gerardus Blokdyk
2020 Edition
1867303531, 978-1867303534
