Residual operating income and abnormal operating income


Question: Residual Operating Income and Abnormal Operating Income Growth (Easy) Here are financial statements for a firm (in millions of dollars):

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The firm has a required return of 10 percent for operations. Calculate residual operating income for 2012 and 2011 using beginning-of-year balance sheet numbers. Then calculate abnormal operating income growth (in dollars) for 2012.

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Finance Basics: Residual operating income and abnormal operating income
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