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Yale Corporation had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is
Yale Corporation had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is 5%. Its effective tax rate is 30%. What is the division's Return on Investment (ROI)? A. 40% B. 8% C. 250% D. 47.24% Ruby's Department Store has budgeted cost of goods sold of $42,000 for its men's shorts in March. Management also wants to have $7,000 of men's shorts in inventory at the end of March to prepare for the summer season. Beginning inventory of men's is expected to be $4,900. What dollar amount of men's shorts should be purchased in March? A. $44,100 B. $53,900 C. $30,100 D. $39,900
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