4.

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 20% and the weighted average cost of capital is 15%. Its effective tax rate is 35%. Sales $7,000,000 Operating income 2,450,000 Total assets 2,500,000 Current liabilities 790,000 What is the division's sales margin? O A. 98% O B. 35% O C. 280% O D. 31.6%