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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 20% and the weighted average cost of capital is 25%. Its effective tax rate is 40%. Sales $13,000,000 Operating income 1,300,000 Total assets 4,000,000 Current liabilities 800,000 What is the division's Residual Income (RI)? A. $5,200,000 B. $300,000 O C. $200,000 OD. $500,000

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