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Management's target rate of return is 5% and the weighted average Assume the Air Conditioning division of the General Appliance Corporation had the following results
Management's target rate of return is 5% and the weighted average Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands cost of capital is 10%. Its effective tax rate is 35%. Sales Operating income Total assets Current liabilities $8,000,000 2,400,000 4,000,000 810,000 What is the division's capital turnover? OA. 3.33 OB. 4.94 OC. 1.67 O D. 2
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