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Required 1 Required 2. Required 3 Assume that the company evaluates performance using residual income and that the minimum required rate of return for any

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Required 1 Required 2. Required 3 Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division. Hand Tool Power Tool Residual income Is the Power Tool's Division greater amount of residual income an indication that it is better managed? Yes No

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