Assume the Cell Phone Division of the First Electronics Corporation

question 13

Multiple Choice

Assume the Cell Phone Division of the First Electronics Corporation had the following results last year (in thousands) .Management's target rate of return is 10% and the weighted average cost of capital is 7%.Its effective tax rate is 30%. $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 6,000,000 \\\hline \text { Operating income } & 900,000 \\\hline \text { Total assets } & 3,000,000 \\\hline \text { Current liabilities } & 750,000 \\\hline\end{array}$$
- What is the division's capital turnover?

• A)2.0
• B)3.3
• C)4.0
• D)6.7

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Definitions:

Rhonchus

A coarse rattling sound somewhat like snoring, usually caused by secretions in bronchial airways.

Rhonch

A low-pitched, snore-like sound heard upon auscultation of the chest, often caused by obstruction of the airways.

Eupnea

Normal, unlabored breathing or respiratory activity.

Eu-

A prefix meaning good, well, true, or genuine.