Izzy Division of Marine Boats Corporation had the following results last year (in thousands). Management's target rate of return is 13% and the weighted average cost of capital is 8%.
What is the Izzy Division's Residual Income (RI)?
A)$65,000
B)$390,000
C)$500,000
D)$110,000

Question

Izzy Division of Marine Boats Corporation had the following results last year (in thousands).  Management's target rate of return is 13% and the weighted average cost of capital is 8%.
What is the Izzy Division's Residual Income (RI)?
A)$65,000 
B)$390,000 
C)$500,000 
D)$110,000

Quizplus · Accepted Answer

The Answer of Izzy Division of Marine Boats Corporation had the following results last year (in thousands).  Management's target rate of return is 13% and the weighted average cost of capital is 8%.
What is the Izzy Division's Residual Income (RI)?
A)$65,000 
B)$390,000 
C)$500,000 
D)$110,000

Izzy Division of Marine Boats Corporation Had the Following Results