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%?
- $600,000
- $1,406,250
- $1,443,750
- $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 |