19.

Which of the following formulas computes residual income?

a.Residual Income = After-tax Operating Income / (Actual Percentage Cost of Capital Total Capital Employed)

b.Residual Income = Operating Income Return on Investment

c.Residual Income = Operating Income / Average Operating Assets

d.Residual Income = (Minimum Rate of Return Average Operating Assets) / Operating Income

e.Residual Income = Operating Income (Minimum Rate of Return Average Operating Assets)