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Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands) .Management's target rate of return is 15% and the weighted average cost of capital is 10%.Its effective tax rate is 35%.
What is the division's Residual Income (RI) ?
Reliability
The extent to which a measurement instrument yields reliable and uniform outcomes.
Validity
The degree to which an idea, inference, or measurement is substantiated and probably accurately reflects reality.
Reliability
How much a testing tool delivers steady and dependable results throughout time.
Validity
The degree to which a notion, conclusion, or measurement is solidly based and accurately reflects reality.
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