The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). 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)?
A)$276,000
B)$230,000
C)$460,000
D)$510,000

Question

The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands).  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)?
A)$276,000 
B)$230,000 
C)$460,000 
D)$510,000

Quizplus · Accepted Answer

The Answer of The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands).  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)?
A)$276,000 
B)$230,000 
C)$460,000 
D)$510,000

The Top Hat Division of Blandon's Fine Menswear Had the Following