What is the residual income

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The following information is available: Net operating income after taxes = $200,000

Before-tax operating income $300,000

Average invested capital $500,000

After-tax cost of capital = 10%

What is the residual income?

a. $50,000

b. $30,000

c. $250,000

d. $150,000

 

Reference no: EM132766951

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