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Adams Industries has Net Income of $25,000. Adams also has a cost of equity capital of 18% and a book value of equity at the

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Adams Industries has Net Income of $25,000. Adams also has a cost of equity capital of 18% and a book value of equity at the beginning of the year of $125,000. Adams can add a new division at a cost of $40,000 in new equity. The new division believes that the division will increase Net Income by $7,600. What will the total abnormal earnings be if Adams adds the new division? $10.100$2.900$2,500$400 Adams Industries has Net Income of $25,000. Adams also has a cost of equity capital of 18% and a book value of equity at the beginning of the year of $125,000. Adams can add a new division at a cost of $40,000 in new equity. The new division believes that the division will increase Net Income by $7,600. What will the total abnormal earnings be if Adams adds the new division? $10.100$2.900$2,500$400

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