Problem - Signs Unlimited has a target rate of return of 20% for each of its divisions. Signs Unlimited's weighted average cost of capital is 14% and its effective tax rate is 34%. Signs Unlimited's Florida Division had the following results last year:
Sales $48,600
Operating income 4,900
Total assets 22,600
Current liabilities 4,800
Requirements:
1. Calculate return on investment (show as a percentage rounded to 2 decimal places).
2. Calculate sales margin (show as a percentage rounded to 2 decimal places).
3. Calculate capital turnover (round to 2 decimal places).