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

question 166

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 asset turnover?

• A) 2.0
• B) 4.2
• C) 8.3
• D) 13.3

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Definitions:

Service Agreement

A formal contract between a service provider and a client that defines the services to be provided, the terms, and the obligations of both parties.

Used Car

A pre-owned vehicle that has had one or more retail owners before the current buyer.

Disaffirm Contracts

A legal term referring to a party's right to renounce a contract, typically used in the context where one party is not legally bound due to age or mental status.

Necessaries

Essential items or services required for an individual's basic needs and well-being, often related to contracts with minors.