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The Pasta Division of Whole Grain Corporation had sales of $ 7 000 000 and operating income of $ 1 190 000 last year. The
The Pasta Division of Whole Grain Corporation had sales of $ 7 000 000 and operating income of $ 1 190 000 last year. The total assets of the Pasta Division were $ 2 000 000, while current liabilities were $ 300 000. Whole Grain Corporation's target rate of return is 11%, while its weighted average cost of capital is 7%. The effective tax rate for the company is 25%. What is the Pasta Division's capital turnover?
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