Calculating residual operating income dell inc medium dell


Question: Calculating Residual Operating Income: Dell, Inc. {Medium) Dell, Inc., reported after-tax operating income of $2,6 18 million for fiscal year 2008, along with operating assets at the beginning of the year of$13,230 million and operating liabilities of $20,439 million. Using a cost of capital for operations of 12 percent, calculate Dell residual operating income for the year. Describe, in words, how Dell generated value during the year.

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Finance Basics: Calculating residual operating income dell inc medium dell
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