Residual income, Financial Management

Residual Income

This is used for external reporting purposes. This term refers to the net income which is available for distribution to the firm's common stock holders. In managerial accounting it will provide the excess divisional or segment income over the product of the cost of capital for the organization multiplied by the average amount of capital invested during the period over which the income was earned in the division.

Posted Date: 10/16/2012 7:52:00 AM | Location : United States







Related Discussions:- Residual income, Assignment Help, Ask Question on Residual income, Get Answer, Expert's Help, Residual income Discussions

Write discussion on Residual income
Your posts are moderated
Related Questions
The price of a non-dividend paying share, St, follows a geometric Brownian motion process. The current price of the share is £10 and volatility of the share price process is 12% pe

Introduction to financial management: Meaning and defecation of the financial management Finance function Scope and content of financial function Functions and

Question 1 Describe the functions of merchant banking and functions of financial intermediaries Question 2 What do you understand by book building and Green shoe option

INVESTMENT DECISION AND COST OF CAPITAL In Finance, investment decision is disclose the allocation of funds in fixed assets or long term. This decision is also known as capita



(a) The BEQ is 200 customers per month, i.e. $3,000 / ($20 - $5) (b) The margin of safety is 300 customers, i.e. 500 - 200 (c) Graph (d) New break-even is 334 customers, i

A firm has net working capital of -$800. Long-term debt is $15,400, total assets are $24,800 and fixed assets are $19,100. What is the amount of the total liabilities.

Active bond management depends on an economic scenario in order to forecast the movements of yield curve. A portfolio manager skillfully builds a portfolio wit

Assume Main Street Store’s Net Sales in 2010 were $1,000,000 and it’s Net Income in 2010 was $17,000. Thus, between 2010 and 2011 Main Street Store’s net sales increased 20%. Durin