The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of​ 5%. Management calculated a weightedaverage cost of capital​ (WACC) of​ 3%. Rainy's corporate tax rate is​ 25%. Sales ​$600,000 Operating income ​180,000 Total assets ​1,300,000 Current liabilities ​300,000 What is the​ division's Residual Income​ (RI)? A. ​$115,000 B. ​$180,000 C. ​$30,000 D. ​$150,000

San ruiz interiors provides design services to residential and commercial clients. the residential services produce a contribution margin of $450,000 and have traceable fixed operating costs of $480,000. management is studying whether to drop the residential operation. if closed, the fixed operating costs will fall by $370,000 and san ruiz’ income will

Which of the following is an example of search costs? a.) driving to a faraway place to find available goods b.) buying goods in some special way that is outside the normal channels c.) paying a premium cost for goods d.) selling extra goods for a discount price

Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note: