Assume the Apple division of the Gala Company had the following results last year (in thousands). Managements required rate of return is 10% and the weighted average cost of capital is 8%. Its effective tax rate is 30%.

What is Apple division's profit margin?

		11.11%
		16.67%
		66.67%
		60%

Sales Operating income Total assets Current liabilities $3,000,000 $500,000 $4,500,000 $300,000