Assume the Residential Division of Kipper Faucets had the following results last year:What is the division’s RI?a. $(140,000)b. $104,000c. $140,000d. $(104,000) Net salesOperating incomeAverage total assetsManagement's target rate of return$ 4,160,0001,040,0005,200,00018%

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Net sales Operating income Average total assets Management's target rate of return $ 4,160,000 1,040,000 5,200,000 18%

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 9EP

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Question

Assume the Residential Division of Kipper Faucets had the following results last year:

What is the division’s RI?

a. $(140,000)

b. $104,000

c. $140,000

d. $(104,000)

Net sales
Operating income
Average total assets
Management's target rate of return
$ 4,160,000
1,040,000
5,200,000
18%

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