The Cardstock Manufacturing Division of the Pulp Paper Company reported the following results from the past year. Shareholders require a return of 6%. Management calculated a weighted average cost of capital (WACC) of 5%. The company's corporate tax rate is 25%. Sales Operating income Total assets Current liabilities What is the division's Residual Income (RI)? $900,000 225,000 $1,400,000 500,000

A 155000

B 171000

C 56250

D 141000

capital (WACC) of 5%. The company's corporale tax rate is 25% What is the division's Residual incoene (FI)