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A division reports the residual income in the amount of $95,000, after-tax income in the amount of $410,000, and the investment base in the amount

  1. A division reports the residual income in the amount of $95,000, after-tax income in the amount of $410,000, and the investment base in the amount of $2,100,000. What is the cost of capital used in the calculation?
    1. 14%.
    2. 15%.
    3. 16%.
    4. 17%

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