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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
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 10% and the weighted average cost of capital is 30%. Its effective tax rate is 25%. Sales $5,000,000 Operating income 1,250,000 Total assets 1,500,000 Current liabilities 820,000 What is the division's capital turnover? A. 4.00 O B. 3.33 O C. 1.83 OD. 1.20
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