02: ABC Company have the following information for 2007: Net operating income 60000 Average Operating Assets 250000 Required rate of return 15% If the manager of company wants to evaluate based on residual income method, during the same period , the manager make investment by 100000 to generate additional operating income by 15000. Required: Can you support his position and why? 03: ABC Company have the following information for 2007: Net operating income 30000 Average Operating Assets 100000 Required rate of return X Residual income 10000 Required: Compute Required rate of return