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    Evaluate: The Required Rate of Return

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    Question: The Consumer Products Division of Goich Corporation had average operating assets of $782,000 and a net operating income of $89,300 in May. The minimum required rate of return for performance evaluation purposes is 9%. What was the Consumer Products Division's residual income in May?

    $18,920
    $20,220
    -$18,920
    -$20,220.

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    https://brainmass.com/business/beta-and-required-return-of-a-project/evaluate-required-rate-return-211142

    Solution Summary

    In a very brief, but concise solution, this response provides the necessary equation required to solve for residual income. All calculations are completed.

    $2.19

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