Assume the Hiking Shoes Division of the All About Shoes

question 72

Multiple Choice

Assume the Hiking Shoes division of the All About Shoes 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 30%. What is the division's capital turnover?

• A)5)00
• B)2)00
• C)2)50
• D)4)38

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Definitions:

Substitute

In a legal or contractual context, to replace one obligation, duty, or individual with another.

Cash

represents money in the physical form of currency, such as coins and banknotes, used to purchase goods, services, or settle debts.

Certify

To officially recognize, verify, or declare something as true, accurate, or in compliance with certain standards.

Sufficient Funds

Availability of enough money or resources to meet financial obligations or complete transactions.