Question: Font Question 3 Paragraph Heading 1 Heading 2 Heading 3 Heading 4 Heading 6 Styles [20 marks] The Multi-Corporation has three different operating divisions.

Font Question 3 Paragraph Heading 1 Heading 2 Heading 3 Heading 4

Font Question 3 Paragraph Heading 1 Heading 2 Heading 3 Heading 4 Heading 6 Styles [20 marks] The Multi-Corporation has three different operating divisions. Financial information for each division is as follows: Clothing Appliances Sporting Goods Sales Omani Rial 3,000,000 Omani Rial 15,000,000 Omani Rial 25,000,000 Operating income 330,000 1,250,000 3,200,000 Net income (A/T) 135,000 870,000 1,400,000 Assets 1,200,000 10,000,000 8,000,000 A. B. Which division provides the highest operating margin? Which division provides the lowest after-tax profit margin? [3 Marks] [3 Marks] C. Which division has the lowest after-tax return on assets? [3 Marks] D. Compute net income (after-tax) to sales for the entire corporation. [2 Marks] E. Compute net income (after-tax) to assets for the entire corporation. [2 Marks] F. The vice president of finance suggests the assets in the Appliances division can be sold off for Omani Rial 10 million and redeployed in Sporting Goods. The new Omani Rial 10 million in Sporting Goods will produce the same after-tax return on assets as the current Omani Rial 8 million in that division. Re-compute net income to total assets for the entire corporation assuming the above suggested change. [4 Marks]

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