if operating income is $60,000, average operating assets are $240,000, and the minimum required rate of return is 20%, what is the residual income would be $240,000*20/100= $48000.
What is required rate of return?
The minimal return an investor will take for holding a company's shares in exchange for taking on a certain amount of risk is known as the necessary rate of return.
The investor must also take into account his or her cost of capital, the return offered by other competing investments, and inflation in order to compute the RRR properly and increase its usefulness.
A retiree will have a lower risk tolerance and, as a result, be willing to accept a lesser return than an investor who just finished college and may have a larger stomach for risk. This is because the RRR is a subjective minimum rate of return.
To study more about required rate of return
https://brainly.com/question/22696877
#SPJ4