Compute the company residual income

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Question - Consider the following information and compute the company's Residual Income.

Investment center's profit before interest but after tax - P50,000

Investment center's total assets - P800,000

Investment center's total current liabilities - P80,000

Weighted-average cost of capital - 6.5%

Interest expense - P30,000

Tax rate - 20%

Minimum required ROI - 5.0%

Reference no: EM133013913

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