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Izzy Division of Marine Boats Corporation Had the Following Results

Question 169

Multiple Choice

Izzy Division of Marine Boats Corporation had the following results last year (in thousands) . Izzy Division of Marine Boats Corporation had the following results last year (in thousands) . Management's target rate of return is 10% and the weighted average cost of capital is 8%. What is the Izzy Division's Residual Income (RI) ? A) $ 70,000 B) $ 400,000 C) $ 700,000 D) $ 300,000 Management's target rate of return is 10% and the weighted average cost of capital is 8%.
What is the Izzy Division's Residual Income (RI) ?


A) $ 70,000
B) $ 400,000
C) $ 700,000
D) $ 300,000

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