The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of 11% Management calculated a weighted-average cost of capital (WACC) of 2%. Rainy's corporate tax rate is 30 %.
Sales $900.000
Operating income $225,000
Total assets $1,700,000
Current liabilities $800,000
What is the division's Residual Income (RI)?
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