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Pigeon Forges' stakeholders require a 7% rate of return. The company currently has an ROI of...

Pigeon Forges' stakeholders require a 7% rate of return. The company currently has an ROI of 59.4% and a capital turnover of 3.6 What is Pigeon's sales margin?

213.8%

25.2%

16.5%

1.9%

0 0
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Answer #1
ROI = Sales margin X Capital turnover
Sales margin = ROI/Capital turnover
Sales margin = 59.4%/3.6= 16.5%
Option C 16.5% is correct
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