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Which of the Following Is the Correct Formula to Compute

Question 69

Multiple Choice

Which of the following is the correct formula to compute residual income?


A) Average operating assets - Net operating income
B) Average operating assets - (Net operating income ´ Minimum required rate of return)
C) Net operating income ´ Minimum required rate of return
D) Net operating income - (Average operating assets ´ Minimum required rate of return)

Correct Answer:

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