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
Define the first aspect of capital budgeting decision The first aspect of capital budgeting decision relates to the choice of new asset out of the alternatives available or rea

. Why do some organizations seem to have a new CEO every year or two, whereas others have top leaders who stay with the company for many years (e.g., John Chambers at Cisco)? What

SUPERVALU INC . , a large US retail grocer, had $36.1 billion in sales for its fiscal year ended February 25, 2011. SUPERVALU currently reports using US GAAP. The controller of

To evaluate a company using enterprise discounted cash flow (DCF), we discount free cash flow by the weighted average cost of capital (WACC). The weighted average cost of capital r

Profitability Ratios   Profit Margin  It is a measure of the profit margin of the company. This is important to gauge the financial position of the company.

Why does the riskiness of portfolios have to be looked at differently than the riskiness of individual assets? The riskiness of portfolios has to be seemed to be at differently

Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain. In fact, an analyst wouldn't use the Modified Du Pont eq

Normally, floater coupon rate moves in the same direction as the reference rate. That is, with an increase in the reference rate, the floater coupon rate also increases

Investors require an 11% return on a preferred stock that pays a $2.30 annual dividend.  What is the price

1. List five different types of resource that a company might consider hiring or leasing. Explain why the might choose these option instead of outright purchase 2. List three di