The Eastern Division of Kentucky Company has a rate of return on investment of 28% and a profit margin of 20%. What is the investment turnover?
A) 3.6
B) 1.4
C) 5.0
D) .7

Name: The Eastern Division of Kentucky Company has a rate of return on investment of 28% and a profit margin of 20%. What is the investment turnover? A) 3.6 B) 1.4 C) 5.0 D) .7
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Question

Quizplus · Accepted Answer

Investment turnover is calculated by dividing the rate of return on investment by the profit margin. Here, 28% / 20% = 1.4.

The Eastern Division of Kentucky Company Has a Rate of Return