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

5%. Its effective tax rate is

40%.

Sales	$13,000,000
Operating income	4,550,000
Total assets	1,000,000
Current liabilities	760,000

What is the division's capital turnover?

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Part 1

A.

0.22

B.

1.32

C.

13

D.

2.86