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TOP The Pasta Division of Whole Grain Corporation had sales of $9,000,000 and operating income of $1,620,000 last year. The total assets of the Pasta
TOP The Pasta Division of Whole Grain Corporation had sales of $9,000,000 and operating income of $1,620,000 last year. The total assets of the Pasta Division were $2,500,000, while current liabilities were $340,000. Whole Grain Corporation's target rate of return is 12%, while its weighted average cost of capital is 5%. The effective tax rate for the company is 30%. What is the Pasta Division's Residual Income (RI)? O A. $1,495,000 O B. $1,320,000 OC. $1,134,000 OD. $300,000
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