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The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of 9%. Management...

The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of 9​%. Management calculated a weighted−average cost of capital​ (WACC) of 8​%. ​Rainy's corporate tax rate is 30​%.


Sales-- $600,000

Operating income -- 150,000

Total assets -- 1,400,000

Current liabilities -- 200,000


What is the​ division's Residual Income​ (RI)?



A.

$96,000


B.

$150,000


C.

$54,000


D.

$ 24,000

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