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Correll Company has two divisions, A and B. Information for each division is as follows: Division A B Operating Profit A $40,000 B $260,000 Investment
Correll Company has two divisions, A and B. Information for each division is as follows:
Division
A
B
Operating Profit
A $40,000
B $260,000
Investment in Division
A $100,000
B $1,200,000
Weighted Average Cost of Capital
A 12%
B 12%
Profit Margin Percentage
A 10%
B 20%
What is the investment turnover for Division A?
A.
2.5
B.
.10
C.
.15
D.
4.00
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