what is the residual income for the frizzle company if the firms cost of capital is 593081

What is the residual income for the Frizzle Company if the firms cost of capital is 15%?

  1. $600,000
  2. $1,406,250
  3. $1,443,750
  4. $1,350,000

In a recent electrical storm, the Frizzle Company lost a portion of its accounting records. The IT manager at Frizzle was able to retrieve the following information:

Sales

$2,500,000

Net operating income

$1,500,000

Total assets

Return on investment

0.25

Residual Income