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The Following Information Is Available for Des Plaines Company

Question 22

Multiple Choice

The following information is available for Des Plaines Company: The following information is available for Des Plaines Company: Invested capital is defined as total assets less current liabilities.The after-tax operating income is $150,000.The after-tax cost of capital is 20%.The before-tax operating income is $200,000.What is the residual income? A) $90,000 B) $120,000 C) $125,000 D) $175,000 Invested capital is defined as total assets less current liabilities.The after-tax operating income is $150,000.The after-tax cost of capital is 20%.The before-tax operating income is $200,000.What is the residual income?


A) $90,000
B) $120,000
C) $125,000
D) $175,000

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