Question
The Finishing division of Tamara Corporation reported a residual income of $350,000. The division had $9 million of invested capital and a profit of $1.5
The Finishing division of Tamara Corporation reported a residual income of $350,000. The division had $9 million of invested capital and a profit of $1.5 million. What is the imputed interest rate of the corporation?
| a. | 16.7% | |
| b. | 23.3% | |
| c. | 12.8% | |
| d. | 20.6% | |
| e. | None of the answers. |
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Cost Management Accounting And Control
Authors: Don R. Hansen, Maryanne M. Mowen
5th Edition
0324233108, 978-0324233100
