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:

Reproductive Success

The passing of genes onto the next generation in a way that they too can pass those genes on.

Mortality

The state of being subject to death; often used to describe the rate at which death occurs in a population or the number of deaths in a specific period.

Sink Habitats

Areas that attract and accumulate migrating animals or propagate species but have lower survival rates or reproductive success compared to source habitats.

Infant Mortality Rate

The number of infant deaths per 1000 live births. (A child is an infant during his or her first two years of life.)