Question
Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is
Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is
10%
and the weighted average cost of capital is
55%.
Its effective tax rate is
25%.
| Sales | $ 5,000,000 |
| Operating income | 1,500,000 |
| Total assets | 2,000,000 |
| Current liabilities | 850,000 |
What is the division's Residual Income (RI)?
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Financial Stability Economic Growth And The Role Of Law
Authors: Douglas W. Arner
1st Edition
0521690560, 978-0521690560
