The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted-average cost of capital (WACC)of 8%. Allied's corporate tax rate is 35%. What is the division's sales margin?
A)20.00%
B)35.71%
C)7)14%
D)57.14%

Question

The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted-average cost of capital (WACC)of 8%. Allied's corporate tax rate is 35%.  What is the division's sales margin?
A)20.00% 
B)35.71% 
C)7)14% 
D)57.14%

Quizplus · Accepted Answer

The Answer of The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted-average cost of capital (WACC)of 8%. Allied's corporate tax rate is 35%.  What is the division's sales margin?
A)20.00% 
B)35.71% 
C)7)14% 
D)57.14%

The Box Manufacturing Division of the Allied Paper Company Reported