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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

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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 30% and the weighted average cost of capital is 25% its effective tax rate is 35% Sales $10,000,000 Operating income 2,500,000 Total assets 3,000,000 Current liabilities 800,000 What is the division's Residual Income (RI)? O A $1,750,000 B. $3,500,000 C. $1,600,000 D. $560,000

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