The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands).

Management's target rate of return is 12% and the weighted average cost of capital is 9%.
What is the Top Hat Division's capital turnover?

Question

The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands).

Management's target rate of return is 12% and the weighted average cost of capital is 9%.
What is the Top Hat Division's capital turnover?

Quizplus · Accepted Answer

C)
Capital turnover = Sales/Total assets
= 4,500,000/3,000,000
= 1.5

The Top Hat Division of Blandon's Fine Menswear Had the Following