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Red Earth Company Has Two Divisions,the Okla Division and the Homa

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Red Earth Company has two divisions,the Okla Division and the Homa Division.Last year,the Okla Division earned $66,000 using average operating assets of $550,000.Last year,the Homa Division earned $260,000 using average operating assets of $2,000,000.Minimum required rate of return for Red Earth is 9 percent.
Red Earth Company has two divisions,the Okla Division and the Homa Division.Last year,the Okla Division earned $66,000 using average operating assets of $550,000.Last year,the Homa Division earned $260,000 using average operating assets of $2,000,000.Minimum required rate of return for Red Earth is 9 percent. Now assume that the minimum required rate of return for Red Earth is 12 percent. Now assume that the minimum required rate of return for Red Earth is 12 percent.
Red Earth Company has two divisions,the Okla Division and the Homa Division.Last year,the Okla Division earned $66,000 using average operating assets of $550,000.Last year,the Homa Division earned $260,000 using average operating assets of $2,000,000.Minimum required rate of return for Red Earth is 9 percent. Now assume that the minimum required rate of return for Red Earth is 12 percent.

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