Camden Corporation Has Operating Income of $87,000, a Sales Margin

question 100

Multiple Choice

Camden Corporation has operating income of $87,000, a sales margin of 15%, and capital turnover of 2.5. The return on investment (ROI) for Camden Corporation would be closest to

• A)6%.
• B)38%.
• C)107%.
• D)2%.

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Definitions:

Voting Power

The right of shareholders to vote on corporate matters, usually proportional to the number of shares they hold.

Equity Stakeholding

Ownership interest in a company, usually represented by holding shares of the company's stock.

Associate

In business, it refers to a company in which another company owns a significant but not majority share, typically between 20% and 50%, giving it a significant influence over the associate.

Financial Decisions

Choices made by individuals or businesses relating to the use of financial resources, including investment, financing, and dividend decisions.