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Owen Company has net income of $200,000, $150,000 in interest expense, an income tax rate of .30 percent, and a cost of capital of 12
Owen Company has net income of $200,000, $150,000 in interest expense, an income tax rate of .30 percent, and a cost of capital of 12 percent. It has total assets of $1,825,000, with noninterest-bearing current liabilities of $300,000. Calculate NOPAT and residual income for Owen.
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