The Millard Division's Operating Data for the Past Two Years

question 185

Multiple Choice

The Millard Division's operating data for the past two years are provided below:
$\begin{array}{l}\begin{array} { | l | r | r | } \hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { Return on Investment } & 12 \% & 36 \% \\\hline \text { Shareholders' Equity } & \$ 800,000 & \$ 500,000 \\\hline \text { Operating Income } & ? & \$ 360,000 \\\hline \text { Turnover } & ? & 3 \\\hline \text { Margin } & ? & ? \\\hline \text { Sales } & \$ 3,200,000 & ? \\\hline\end{array}\\\text { Millard Division's margin in Year } 2 \text { was } 150 \% \text { of the margin in Year } 1 .\end{array}$


-What was the turnover for Year 1?

• A) 1.2.
• B) 1.5.
• C) 3.0.
• D) 4.0.

---

Definitions:

Market Value

The cost at which a property would be sold in a competitive bidding environment.

Annual Dividend

Annual dividend is the total dividend payment a shareholder receives from a company in a fiscal year.

Standard Deviation

A measure of the dispersion or variability around the mean of a set of data, often used in finance to assess investment risk.

Expected Rate

An anticipated return on investment, interest rate, or growth rate based on historical data, market analysis, or other predictive models.