Pendant Publishing reported the following results for its Textbook Division: Sales...
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Accounting
Pendant Publishing reported the following results for its Textbook Division:
Sales
$4,600,000
Operating income
$690,000
Total assets
$2,000,000
Current liabilities
$1,100,000
Pendant's target rate of return is 17% and the weighted average cost of capital is 16%. Its effective tax rate is 40%. What is the Textbook Division's Residual Income (RI)?
$350,000
$320,000
$1,056,000
$340,000
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