sir i dont understand this definition of residual income mentioned in my study text:
"RI is the net operating income that an investment centre or division earns above the minimum required return on its operating assets"
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residual income
6y ago#1It is the profit less (the required return multiplied by the net assets).
I explain this in full, with an example, in my free lectures.
The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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