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The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales $4,200,000 Operating income $840,000 Total assets $1,500,000 Current
The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales $4,200,000 Operating income $840,000 Total assets $1,500,000 Current liabilities $200,000 Management's target rate of return is 7% and the weighted average cost of capital is 6%. What is the Top Hat Division's Residual Income (RI)? ..... A. $735,000 B. $546,000 C. $252,000 D. $640,000
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