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    Exam 13: Financial Performance Measures and Incentive Schemes
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    Extan Division of World Corporation Reported a Residual Income of $200
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Extan Division of World Corporation Reported a Residual Income of $200

Question 23

Question 23

Multiple Choice

Extan division of World Corporation reported a residual income of $200 000.The division had $8 million of invested capital and a profit of $1 million.What is the imputed interest rate?


A) 7.5%
B) 10.0%
C) 12.5%
D) 20%

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