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if net operating income is $39,000, average operating assets are $351,000, and the minimum required rate of return is 10%, what is the residual income?

Respuesta :

Net operating income is equal to 351000×10%= 35100. Residual income is 39000-351002 = 3900.

Residual revenue is the money that continues to flow in after an initial time and resource investment has been made. Some examples of residual income are artist royalties, rental income, interest income, and dividend payments.

By figuring out the residual income, businesses can allocate resources among investments more efficiently. A high RI shows that the company has excelled its required minimum rate of return. On the other hand, a negative RI means that the rate of return was lower than anticipated..

Learn more about residual income here:

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