The Tandem Division of the Great Adventures Cycles Company Had

question 124

Multiple Choice

The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) . $$\begin{array} { | l | r r | } \hline \text { Sales } & \$ & 4,000,000 \\\hline \text { Operating incare } & \$ & 480,000 \\\hline \text { Total assets } & \$ & 2,000,000 \\\hline \text { Current liabilities } & \$ & 300,000 \\\hline\end{array}$$ Management's target rate of return is 10% and the weighted average cost of capital is 8%.Its effective tax rate is 40%.
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What is the Tandem division's capital turnover?

• A)2.0
• B)4.2
• C)8.3
• D)13.3

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Definitions:

Myers-Briggs Type Indicator

A psychological assessment tool designed to measure individual personality types based on Carl Jung's theory, encompassing four dichotomies of personality preferences.

Self-report Inventories

Psychological assessment tools where individuals provide subjective responses about their own thoughts, feelings, or behaviors.

Maudsley Personality Inventory

A psychological assessment tool designed to measure different aspects of personality, including neuroticism and extraversion.

Self

A concept that embodies the array of beliefs, perceptions, and feelings individuals have about themselves, influencing their behavior and interactions.