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Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 15%

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Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 25%. Sales Operating income Total assets Current liabilities $7,000,000 2,800,000 2,000,000 810,000 What is the division's Residual Income (RI)? O A. $1,750,000 O B. $2,600,000 O C. $625,000 OD. $2,500,000

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