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problem: A corporation has provided the data:

Return on investment (ROI) 15 percent

Sales $120,000

Average operating assets $60,000

Minimum required rate of return 12 percent

Margin on sales 7.5 percent

The corporation's residual income is:

[A]    $2,700

[B]    $3,600

[C]    $1,800

[D]    $5,400

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916954

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