Multiple Choice
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year.Shareholders require a return of 7%.Management calculated a weighted-average cost of capital (WACC) of 5%.Allied's corporate tax rate is 30%.
What is the division's sales margin?
A) 25.00%
B) 46.67%
C) 11.67%
D) 40.00%
Correct Answer:
Verified
Correct Answer:
Verified
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