Mako Division Had the Following Information: Asset Base in Mako

question 8

Multiple Choice

Mako Division had the following information: Asset base in Mako Division $400,000
Net income in Mako Division $50,000
Weighted average cost of capital 12%
Target ROI 15%
Margin for Mako Division 20%
What is the turnover ratio for Mako Division?

• A) 0.200
• B) 0.625
• C) 0.125
• D) 8.000

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Definitions:

Adipocytes

These are fat cells in the body that store energy in the form of lipids.

Adipose Tissue

Adipose tissue is a type of body fat or connective tissue primarily composed of adipocytes, used for the storage of energy and as insulation and cushioning for the body.

Protective Cushion

A safeguarding structure or material that mitigates impact or pressure, often found in biological contexts like the pads of tissue that protect underlying organs.

Elongated Fibers

Refers to cells that have been stretched or lengthened, often found in muscle and connective tissues.