The Box Manufacturing Division of the Allied Paper Company Reported

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 capital turnover?

A) 0.47
B) 4.00
C) 8.57
D) 2,50