Business, 13.12.2019 20:31 callmedarthvadorplz

Which of the following formulas computes residual income?

a. residual income = operating income − return on investment
b. residual income = operating income − (minimum rate of return × average operating assets)
c. residual income = after-tax operating income / (actual percentage cost of capital × total capital employed)
d. residual income = operating income / average operating assets
e. residual income = (minimum rate of return × average operating assets) / operating income

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Which of the following formulas computes residual income?

a. residual income = operati...

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