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Assume the Hiking Shoes division of the All About Shoes Corporation had the following results...

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Accounting

Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is 30%. Its effective tax rate is 30%. Sales $ 8,000,000 Operating income 800,000 Total assets 2,000,000 Current liabilities 750,000 What is the division's Return on Investment (ROI)? A. 10.00% B. 40.00% C. 37.50% D. 400.00%

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