Use the Information Below to Answer the Following Question(s)

question 62

Multiple Choice

Use the information below to answer the following question(s) :
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) .

Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-What is the Tandem division's profit margin?

• A) 7.50%
• B) 24.00%
• C) 12.00%
• D) 200.00%

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Definitions:

Relearning

The process of learning material or skills that were previously learned and then forgotten.

Original Learning

The initial process of acquiring knowledge or skills through experience, study, or instruction.

Speed

The rate at which someone or something is able to move or operate, or the ability to move quickly.

Stimulus Generalization

The tendency of a learned response to occur in the presence of stimuli similar to the original stimulus that elicited the response.