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6. Profit margin, Investment turnover, and rate of return on Investment The divisional income statements for three divisions of the Chung Company are shown. Additional
6. Profit margin, Investment turnover, and rate of return on Investment The divisional income statements for three divisions of the Chung Company are shown. Additional financial data from the three divisions of the Chung Company are shown. Calculate the profit margin and the Investment turnover for each division. Round profit margin to the nearest tenth of a percent (for example, 14.6%) and investment turnover to two decimal places (for example, 0.82). Profit margin Investment turnover Division A Division B Division C Using the profit margins and investment turnovers, calculate the rate of return on investment for each division using the DuPont formula. Round the rate of return on investment to the nearest hundredth of a percent (for example, 16.94%). Division A Division B Division C Rate of return on investment The division showing the highest operating profitability is Division
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