Last year, Green Thumb's Residential Division reported sales of $950,000, interest expense of $100,000, and net income of $126,000.The company's tax rate is 30 percent, and it has an 8 percent cost of capital and a 9 percent required rate of return.Residential Division has noninterest-bearing current liabilities that total $75,000 and it has total assets of $820,000.How much is the Residential Division's invested capital?
A) $820,000
B) $875,000
C) $895,000
D) $745,000
Correct Answer:
Verified
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