Pigeon Forges' stakeholders require a 10% rate of return.The company currently has an ROI of 37% and a capital turnover of 2.0.What is Pigeon's sales margin?
A)74.3%
B)5.0%
C)18.5%
D)20.0%

Name: Pigeon Forges' stakeholders require a 10% rate of return.The company currently has an ROI of 37% and a capital turnover of 2.0.What is Pigeon's sales margin? A)74.3% B)5.0% C)18.5% D)20.0%
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Question

Quizplus · Accepted Answer

C)
ROI = Sales Margin × Capital Turnover
37% = Sales Margin × 2.0
18.5% = 37% / 2.0

Pigeon Forges' Stakeholders Require a 10% Rate of Return