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The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted average cost of capital (WACC) of 8%. Allied's corporate tax rate is 35%. Sales $500,000 Operating income 100,000 Total assets 1,400,000 Current liabilities 800,000 What is the division's sales margin? O A. 57.14% OB. 35.71% OC. 20.00% OD. 7.14%
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