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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 5% its effective tax rate is 25% Sales $15,000,000 Operating income 5 250,000 Total assets 3,500 000 Current liabilities 790,000 What is the division's Residual Income (RI)? O A $1,050.000 OB. $4,200 000 OC 53.750,000 OD. $5.075.000

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