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 15% and the weighted average cost of capital is 10%. Its effective tax rate is 25%. What is the division's sales margin?
A)140%
B)18.75%
C)40%
D)350.00%

Question

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 15% and the weighted average cost of capital is 10%. Its effective tax rate is 25%.  What is the division's sales margin?
A)140% 
B)18.75% 
C)40% 
D)350.00%

Quizplus · Accepted Answer

The Answer of 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 15% and the weighted average cost of capital is 10%. Its effective tax rate is 25%.  What is the division's sales margin?
A)140% 
B)18.75% 
C)40% 
D)350.00%

Assume the Hiking Shoes Division of the All About Shoes