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The Auto Division of Fran Corporation has $2.5 million in total assets and $200,000 in liabilities, while the Transportation Division has $5 million in total
The Auto Division of Fran Corporation has $2.5 million in total assets and $200,000 in liabilities, while the Transportation Division has $5 million in total assets and $3 million in liabilities. What are the imputed costs of the Auto division and of the Transportation division, respectively, if the corporation has a required rate of return of 11%? A) $297,000 and $880,000 B) $200,000 and $3,000,000 C) $253,000 and $330,000 D) $275,000 and $550,000 E) $275,000 and $330,000
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