Assume the Hiking Shoes division of the All About Shoes Corporation had the following results...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is 30%. Its effective tax rate is 30%. Sales $ 8,000,000 Operating income 800,000 Total assets 2,000,000 Current liabilities 750,000 What is the division's Return on Investment (ROI)? A. 10.00% B. 40.00% C. 37.50% D. 400.00%
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
