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%.Its effective tax rate is 40%.
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What is the Tandem division's capital turnover?
A) 2.0
B) 4.2
C) 8.3
D) 13.3
Correct Answer:
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