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Use the Following Information for the Next 3 Questions

Question 38

Multiple Choice

Use the following information for the next 3 questions.
Chicago Division has a required rate of return of 15%. The weighted average cost of capital is 10%. Information for Chicago Divisions operations over the past 2 years follows. Use the following information for the next 3 questions. Chicago Division has a required rate of return of 15%. The weighted average cost of capital is 10%. Information for Chicago Divisions operations over the past 2 years follows. -What was the Chicago Division residual income for 20x5? A) $(12,540) B) $3,300 C) $15,300 D) $19,800
-What was the Chicago Division residual income for 20x5?


A) $(12,540)
B) $3,300
C) $15,300
D) $19,800

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