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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 25% and the weighted average cost of capital is 30%. Its effective tax rate is 40% Sales $14.000.000 Operating income 3,500,000 Total assets 3,500,000 Current bilis 770,000 What is the division's Residual income (RIJ? O A $5,000,000 OB. $1,050,000 OC. $2,625,000 OD. $2,450,000

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