McKesson Reports After Close On 5/8 And Options Expire The Next Day

To determine the required return to justify the operating income, we can use the following steps:

1. Calculate the operating income (EBIT):
   [
   text{EBIT} = text{Revenue} times text{Profit Margin} = 94.19 times 0.102 approx 9.603
   ]

2. Determine the cost of capital:
   • The capital armated ratio is 15%.
   • The cost of capital is calculated as:
     [
     text{Cost of Capital} = text{EBIT} times text{Cost of Capital Factor} – text{Interest}
     ]
   • Compute the operating income after interest:
     [
     text{Operating Income} = text{EBIT} – text{Interest} = 9.603 – 3.2 = 6.403
     ]
   • Compute the required return:
     [
     text{Required Return} = frac{6.403}{0.15} approx 42.69%
     ]

Thus, the required return to justify the current operating income is approximately boxed{42.7%}.