The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of 8%. Management calculated a weighted average cost of capital (WACC) of 2%. Rainy's corporate tax rate is 25%. Sales Operating income Total assets Current liabilities What is the division's Residual Income (RI)? OA. $110,000 OB. $70,000 OC. $40,000 OD. $150,000 $500,000 150,000 1,000,000 100,000

The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of 8%. Management calculated a weighted - average cost of capital (WACC) of 2%. Rainy's corporate tax rate is 25%. What is the division's Residual Income (RI)? A. $110,000 B. $70,000 C. $40,000 D. $150.000