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The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a retum of 7%. Management calculated
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a retum of 7%. Management calculated a weighted -average cost of capital (WACC) of 6%. Allied's corporate tax rate is 30%. Sales Operating income Total assets Current liabilities $600,000 150,000 1,400,000 500,000 What is the division's capital turnover? OA. 4.00 OB. 9.33 O C. 2.80 D. 0.43
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