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5) What is the residual income for a firm that is entirely equity-financed with $1 million in capital, $300,000 in net income, and a 20%

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5) What is the residual income for a firm that is entirely equity-financed with $1 million in capital, $300,000 in net income, and a 20% cost of capital? A) $140,000 B) $500,000 C) $100,000 D) $240,000

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