Which of the following formulas computes residual income?
a. residual income = operati...
Business, 13.12.2019 20:31 callmedarthvadorplz
Which of the following formulas computes residual income?
a. residual income = operating income β return on investment
b. residual income = operating income β (minimum rate of return Γ average operating assets)
c. residual income = after-tax operating income / (actual percentage cost of capital Γ total capital employed)
d. residual income = operating income / average operating assets
e. residual income = (minimum rate of return Γ average operating assets) / operating income
Answers: 1
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