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    Coral Has a Profit Margin of 16% Based on Revenues
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Coral Has a Profit Margin of 16% Based on Revenues

Question 97

Question 97

Multiple Choice

Coral has a profit margin of 16% based on revenues of $400,000 and an investment turnover is 2. What is the residual income when the cost of capital is 10%?


A) $44,000
B) $20,000
C) $40,000
D) $64,000

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