Question
information for tube division is as follows: net earnings for division $20,000 asset base for division $50,000 target rate of return 16% operating income margin
information for tube division is as follows:
net earnings for division $20,000
asset base for division $50,000
target rate of return 16%
operating income margin 12%
weighted average cost of capitol 8%.
what is tubes residual income?
A - $13,000
B - $8,000
C- $16,000
D - $12,000
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Financial Accounting Theory And Analysis Text Readings And Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
8th Edition
0471652431, 9780471652434
