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9. As year (in thou capital is 10%. Its effective tax rate is 25%. sume the Hiking Shoes division of the All About Shoes Corporation

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9. As year (in thou capital is 10%. Its effective tax rate is 25%. sume the Hiking Shoes division of the All About Shoes Corporation had the following results last sands). Management's target rate of return is 15% and the weighted average cost of ales 14,000,000 erating income 5,600,000 otal assets Current liabilities 4,000,000 750,000 What is the division's sales margin? A) 140% B) 18.75% C) 40% D) 350.00% 10. 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 10%. Its effective tax rate is 30%. ales $7,000,000 1,400,000 3,500,000 00,000 ing income otal assets rent liabilities What is the division's capital turnover? A) 5.00 B) 2.00 C) 2.50 D) 4.38 11. 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 30% and the weighted average cost of capital is 15%. Its effective tax rate is 40%. Sales Operating income Total assets Current liabilities $6,000,000 1,800,000 1,000,000 810,000 What is the division's Return on Investment (ROI)? A) 600.00% B) 30.00% C) 180.00% D) 81.00%

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