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The Cardstock Manufacturing Division of the Pulp Paper Company reported the following results from the past year. Shareholders require a return of 5%. Management calculated

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The Cardstock Manufacturing Division of the Pulp Paper Company reported the following results from the past year. Shareholders require a return of 5%. Management calculated a weighted-average cost of capital (WACC) of 3%. The company's corporate tax rate is 40%. What is the division's Residual Income (RI)? A. $80,000 B. $120,000 C. $64,000 D. $112,000

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