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Continental Publishing Company
the Magazine Division of Continental Publishing Company

Question 98

Multiple Choice

Continental Publishing Company
The Magazine Division of Continental Publishing Company had the following financial data for the year:
 Assets available for use $1,000,000 Book Value $1,500,000 Market V alu  Residual income $100,000 Return on innvestment 15%\begin{array}{ll}\text { Assets available for use } & \$ 1,000,000 \text { Book Value } \\& \$ 1,500,000 \text { Market } V \text { alu } \\\text { Residual income } & \$ 100,000\\\text { Return on innvestment } & 15\%\end{array}

Refer to Continental Publishing Company.What was the target rate of return for Continental Publishing Company?


A) 10%
B) 15%
C) 25%
D) 5%

Correct Answer:

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