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Use the Information Below to Answer the Following Question(s)

Question 62

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Use the information below to answer the following question(s) :
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) .
Use the information below to answer the following question(s) : The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) . Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%. -What is the Tandem division's profit margin? A) 7.50% B) 24.00% C) 12.00% D) 200.00%
Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-What is the Tandem division's profit margin?


A) 7.50%
B) 24.00%
C) 12.00%
D) 200.00%

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