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Calculate the? division residual income?

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Question - Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year? (in thousands).? Management's target rate of return is 20?% and the weighted average cost of capital is 10?%. Its effective tax rate is 25?%.

Sales $6,000,000

Operating income 2,700,000

Total assets 3,500,000

Current liabilities 760,000

Required - Calculate the? division's Residual Income? (RI)?

Reference no: EM132739811

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