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13) The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management
13) The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted-average cost of capital (WACC) of 2%. Allied's corporate tax rate is 40%. 13) /Sales Operating income Total assets Current liabilities $900.000 315,000 $1.700.000 100.000 What is the division's Residual Income (RI)? A) $281.000 B) $126.000 C) $162,000 D) $234,000
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