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6 . Suppose that the companys minimum required rate of return on operating assets is 1 4 % and that performance is evaluated using residual
Suppose that the companys minimum required rate of return on operating assets is and that performance is evaluated using residual income.
a Compute the Office Products Divisions residual income for this year.
b Compute the Office Products Divisions residual income for the new product line by itself.
c Compute the Office Products Divisions residual income for next year assuming that it performs the same as this year and adds the new product line.
Please help, thank you
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