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The Box Manufacturing Division of the Allied Paper Company Reported

question 85

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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 7%. Management calculated a weighted-average cost of capital (WACC) of 5%. Allied's corporate tax rate is 30%. The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 7%. Management calculated a weighted-average cost of capital (WACC) of 5%. Allied's corporate tax rate is 30%.   What is the division's sales margin? A) 25.00% B) 46.67% C) 11.67% D) 40.00% What is the division's sales margin?


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