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Use the Following Information for the Next 5 Questions

Question 58

Multiple Choice

Use the following information for the next 5 questions.
Bellingham Division has a required rate of return by corporate headquarters of 20%. The weighted average cost of capital is 12%. You are given the following information for Bellingham's operations for a two-year period: Use the following information for the next 5 questions. Bellingham Division has a required rate of return by corporate headquarters of 20%. The weighted average cost of capital is 12%. You are given the following information for Bellingham's operations for a two-year period: -The residual income for 2005 was A) ($21,000) B) ($22,000) C) ($14,000) D) $1,000
-The residual income for 2005 was


A) ($21,000)
B) ($22,000)
C) ($14,000)
D) $1,000

Correct Answer:

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