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Bookworks Publishing reported the following results for its Textbook Division: Sales Operating income Total assets Current liabilities $4,200,000 $840,000 $1,500,000 $1,440,000 Bookworks' target rate of
Bookworks Publishing reported the following results for its Textbook Division: Sales Operating income Total assets Current liabilities $4,200,000 $840,000 $1,500,000 $1,440,000 Bookworks' target rate of return is 21% and the weighted average cost of capital is 17%. Its effective tax rate is 30%. What is the Textbook Division's capital turnover? A. 2.8 B. 2.9 C. 1.8 D. 5
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