Pendant Publishing reported the following results for its Textbook Division:
Pendant's target rate of return is 22% and the weighted average cost of capital is 15%. Its effective tax rate is 25%.
What is the Textbook Division's capital turnover?
Answer and Explanation:
Correct answer: The last before option) 2.8 times
Pendant Publishing reported that:
For textbook division:
- Sales = $4,200,000
- Total assets = $1,500,000
Capital Turnover = Sales / Total assets
Textbook Division's Capital Turnover = $4,200,000 / $1,500,000
Textbook Division's Capital Turnover = 2.8 times
Become a member and unlock all Study Answers
Try it risk-free for 30 days!Try it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Accounting 101: Financial AccountingChapter 13 / Lesson 7
Related to this Question
Explore our homework questions and answer library
Our tutors are standing by
Ask a study question and one of our experts will send you an answer within hours.
To ask a site support question, click here
Your question has been submitted!
When your answer is ready, it will appear on your Dashboard.