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Author Question: The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income of ... (Read 57 times)

colton

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The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income of $840,000 last year.  The total assets of the Beverage Division were $1,680,000, while current liabilities were $360,000.  Natural Foods Corporation's target rate of return is 9%, while its weighted average cost of capital is 7%.  The effective tax rate for the company is 40%.


What is the Beverage Division's profit margin?
◦ 20.00%
◦ 50.00%
◦ 8.57%
◦ 250.00%


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Marked as best answer by colton on Jan 5, 2020

samiel-sayed

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colton

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Reply 2 on: Jan 5, 2020
YES! Correct, THANKS for helping me on my review


aruss1303

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Reply 3 on: Yesterday
Gracias!

 

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