Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%. What is the division's sales margin?
A)80.00%
B)32.80%
C)20.00%
D)400.00%

Question

Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.  What is the division's sales margin?
A)80.00% 
B)32.80% 
C)20.00% 
D)400.00%

Quizplus · Accepted Answer

The Answer of Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.  What is the division's sales margin?
A)80.00% 
B)32.80% 
C)20.00% 
D)400.00%

Assume the Air Conditioning Division of the General Appliance Corporation