Question
Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands). Management's target rate of return is 15%
Assume the Air Conditioning division of the General Appliance 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 35%. Sales $10,000,000 Operating income 2,000,000 Total assets 2,500000 Current liabilities 820,000 What is the division's sales margin?
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Surviving An IRS Tax Audit
Authors: Frederick W. Daily
3rd Edition
1413318649, 978-1413318647
