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The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of 88?%. Management calculated a weighted?average cost

The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of

88?%. Management calculated a weighted?average cost of capital? (WACC) of 22?%.

?Rainy's corporate tax rate is 35?%.

Sales

$900,000

Operating income

180,000

Total assets

1,000,000

Current liabilities

700,000

What is the? division's Residual Income? (RI)?

100,000

72000

108000

180000

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