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Assume the Running Shoes division of the Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 15% and
Assume the Running Shoes division of the Shoes 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 25%.
Sales............................ .....$14,000,000 Operating income..................5,600,000 Total assets..................... ......4,000,000 Current liabilities.......................750,000
What is the division's sales margin?
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