Dell, Inc., reported after-tax operating income of $2,618 million for fiscal year 2008, along with operating assets

Question:

Dell, Inc., reported after-tax operating income of $2,618 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 for operations of 12 percent, calculate Dell's residual operating income for the year. Describe, in words, how Dell generated value during the year.

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...