Expected return=Total Assetx Require Return %
=$1700000x11%=$187000
Operating Income=$225000
Rsidual income= operatin income-expected income
$225000-187000=$38000
The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require...
The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a retu is 25% of 5% Management calculated a weighted-average cost of captal (VACC) of 3% Rainy's corporate tax rate s000,000 Sales Operating income Total assets Current fabilties 180,000 1,300,000 300,000 What is the division's Residual Income (RI OA $115.000 OB $150,000 Oc. $30,000 OD. $180,000
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 6%. Management calculated a weighted−average cost of capital (WACC) of 3%. Allied's corporate tax rate is 35%. Sales $900,000 Operating income 135,000 Total assets 1,500,000 Current liabilities 600,000 What is the division's Residual Income (RI)? A. $81,000 B. $47,250 C. $45,000 D. $90,000
This Uusz: do pls po The Box Manufacturing Division of the Alied Paper Company reported the following results from the past year Shareholders require a retum of 4% Management calculated a weighted average cost of capital (WACC) of 2% Allied's corporate tax rate is 40% Sales $800,000 Operating income 320.000 Total assets 1,600.000 Current liabilities 600.000 What is the division's sales margin? O A 37.50% OB. 40.00% OC 20.00% OD 50.00%
is Question: 1 pt The Box Manufacturing Division of the Alied Paper Company reported the following results from the past year, Shareholders require a return of 6% Management calculated a weighted average cost of capital (WACC) of 5 Ali's corporate tax rate is 25% $500.000 Operating income 150.000 Totales 1400.000 Currenties 100 000 What is the division's Residual income (RY? OA $37.500 OB 566,000 OC. $120.000 OD. $80.000
The Box Manufacturing Division of the Alled Paper Company reported the folowing results from the past year Sharehokders nequire a retun of 6% Managemont calolated a weighted- average oost of captal (WACC) of 3% Alied's corporate tax rate is 30% Sales $300.000 Operating income Total assets Curent labliges 30.000 1,500,000 900,000 What is the division's capital tumover? O A. 167 OB. 50.00 O C. 020 OD. 10.00
Pendant Publishing reported the following results for its Textbook Division: Sales $4,600,000 Operating income $690,000 Total assets $2,000,000 Current liabilities $1,100,000 Pendant's target rate of return is 17% and the weighted average cost of capital is 16%. Its effective tax rate is 40%. What is the Textbook Division's Residual Income (RI)? $350,000 $320,000 $1,056,000 $340,000
The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales Operating income Total assets Current liabilities $4,600,000 $690,000 $2,000,000 $230,000 Management's target rate of return is 9% and the weighted average cost of capital is 5%. What is the Top Hat Division's Residual Income (RI)? O A. $276,000 O B. 510,000 O C. $230,000 OD, $460,000