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Home Q & A Board Other Fields Homework Help Business Accounting
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bernie2981 bernie2981
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8 years ago
Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.

Sales   $10,000,000
Operating income    2,000,000
Total assets   2,500000
Current liabilities    820,000

What is the division's Residual Income (RI)?
A) $1,625,000
B) $500,000
C) $1,132,364
D) $1,750,000
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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8 years ago
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bernie2981 Author
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8 years ago
this is exactly what I needed
gma_of_7
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Yesterday
Thanks
klyn
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2 hours ago
You make an excellent tutor!
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