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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 9%. Management calculated
The Cardstock Manufacturing Division of the Pulp Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted - average cost of capital (WACC) of 7%. The company's corporate tax rate is 30%. Sales Operating income Total assets Current liabilities What is the division's Residual Income (RI)? $900,000 270,000 $1,500,000 200,000 A. $135,000 B. $165,000 OC. $189,000 OD. $81,000
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