Solution-What is the residual income and return on

What is the residual income and return on investment

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Reference no: EM132591079

Sales $900,000

Operating Income $36,000

Shareholders' Equity $100,000

Average Operating Assets $180,000

Minimum Required Rate of Return 15% 23.

Question 1: What is the residual income?

A. $9,000. 36,000 - 180,000 *.15 = $9,000.

B. $21,000.

C. $24,000.

D. $45,000.

Question 2: What is the return on investment (ROI)?

A. 4%.

B. 15%.

C. 20%.

D. 36%.

Reference no: EM132591079

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What is the residual income and return on investment

Reference no: EM132591079

Reference no: EM132591079

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