Currently analystsrsquo expect google alphabet to have net


Currently analysts’ expect Google (Alphabet) to have Net income of $11.8B during the current fiscal year. At the start of the fiscal year Google had shareholders equity of $120B. Investors in Google’s shares have a 10% cost of capital. Using the Residual Income equation, determine whether or not Google is creating value. What must Google’s Net Income be so that Residual Income = 0?

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Financial Management: Currently analystsrsquo expect google alphabet to have net
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