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Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 25%
Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 25% and the weighted average cost of capital is 15%. Its effe- tax rate is 25%. Sales $10,000,000 Operating income 3,500,000 Total assets 1,500,000 Current liabilities 830,000 What is the division's sales margin? A. 666.67% B. 35% C. 55.33% OD. 233.33%
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