Assume the Air Conditioning Division of the General Appliance Corporation

question 39

Multiple Choice

Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands) .Management's target rate of return is 15% and the weighted average cost of capital is 10%.Its effective tax rate is 35%.

What is the division's sales margin?

• A)80.00%
• B)32.80%
• C)20.00%
• D)400.00%

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Definitions:

Syndiotactic Polypropylene

A type of polypropylene where the methyl groups are arranged in a regular alternating pattern on opposite sides of the polymer backbone.

Neoprene

A synthetic rubber, chemically known as polychloroprene, used in a wide variety of applications, such as in wetsuits and laptop sleeves.

Monomer Structure

The fundamental unit that binds chemically to other molecules to form a polymer.

Atactic Polystyrene

A form of polystyrene where the phenyl groups are randomly arranged, resulting in an amorphous material with no regularity in its structure.