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Zeekhas net income of $20,000. The book value of equity (t-1) is $125,000. The cost of equity is 20%.Zeekis proposing disposing of $10,000 of unproductive
Zeekhas net income of $20,000. The book value of equity(t-1)is $125,000. The cost of equity is 20%.Zeekis proposing disposing of $10,000 of unproductive assets. The net income will not change ifZeekdisposes of the unproductive assets. What willZeekhave as abnormal earnings ifZeekdisposes of the unproductive assets?
<$3,000> |
$20,000 |
<$25,000> |
<$23,000> |
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