Cornwall Company Has Two Divisions, a and B What Is the Operating Asset Turnover for A?
A)0

question 8

Multiple Choice

Cornwall Company has two divisions, A and B. Information for each division is as follows: $\begin{array}{lrr}&A&B\\\text { Net earnings for division } & \$ 40,000 & \$ 260,000 \\\text { Asset base for division } & \$ 100,000 & \$ 1,200,000 \\\text { Target rate of return } & 15 \% & 18 \% \\\text { Margin } & 10 \% & 20 \% \\\text { Weighted average cost of capital } & 12 \% & 12 \%\end{array}$ What is the operating asset turnover for A?

• A)0.15
• B)0.10
• C)4.00
• D)2.50

---

Definitions:

Support Groups

Gatherings of individuals who share common experiences or issues, providing a forum for sharing coping strategies and emotional support.

Atmosphere

The layer of gases surrounding a planet that is retained by the planet's gravity.

Client

An individual or organization that engages the professional services or advice of another.

Own Problems

Pertains to issues or challenges that are specific and unique to an individual or entity.