Which of the Following Statement(s)is/are True? (A)If a Division's Return

Multiple Choice

Which of the following statement(s) is/are true? (A) If a division's return on investment (ROI) exceeds its cost of capital,then its residual income is positive.(B) If a division's cost of capital equals its return on investment (ROI) ,then its residual income is zero.

A) Only (A) is true.
B) Only (B) is true.
C) Both (A) and (B) are true.
D) Neither (A) and (B) is true.