(Answered) Problem - signs unlimited has a target rate of return of 20

Accounting

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).

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