Yale Corporation had the following results last year (in thousands). Management's target rate of return is 20% and the weighted average cost of capital is 15%. Its effective tax rate is 30%. Sales $25,000,000 Operating income 1,000,000 Total assets 2,000,000
Yale Corporation had the following results last year (in thousands). Management's target rate of return is 20% and the weighted average cost of capital is 15%. Its effective tax rate is 30%. Sales $25,000,000 Operating income 1,000,000 Total assets 2,000,000
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 3PA: Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net...
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Yale Corporation had the following results last year (in thousands). Management's target rate of return is 20% and the weighted average cost of capital is 15%. Its effective tax rate is 30%.
Sales
|
$25,000,000
|
Operating income
|
1,000,000
|
Total assets
|
2,000,000
|
Current liabilities
|
5,670,000
|
What is the division's Return on Investment (ROI)?
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