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Pendant Publishing Reported the Following Results for Its Textbook Division

Question 149

Multiple Choice

Pendant Publishing reported the following results for its Textbook Division: Pendant Publishing reported the following results for its Textbook Division: Pendant's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%. What is the Textbook Division's Residual Income (RI) ? A) $275,000 B) $276,000 C) $330,000 D) $110,000 Pendant's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.
What is the Textbook Division's Residual Income (RI) ?


A) $275,000
B) $276,000
C) $330,000
D) $110,000

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