6--

no explnation needed

6. Barron Corp. has a residual income of $14,000 on invested assets of $500,000. If the cost of capital is 12%, what is the operating income? Answer: TABLE 11.2 A 3% 7% 5% 4.25% Perlocks 3 1 2 3 4 5 6 7 B 9 10 20 2% 0.9004 0.9612 0.9123 0.9238 0.9057 OBRO 0.8706 OBSES DBVA 08203 06730 0.9709 0.9426 09151 ORRAS 0826 . 0.8131 0.7894 0.7664 0.7441 05537 3.75% 0.9639 0.9290 0.8954 0.8631 0.8319 0.8018 0.7728 0.7449 0.7180 0.6720 0.4789 0.9615 0.9246 0.8390 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.44 09:12 09201 0.8826 0.8486 0.8121 0.7790 0.7473 0.7168 0.6876 0.6595 0.4350 0.9524 0.9070 0.3438 0.8727 07:35 0.7462 07107 0.6768 0.6446 06139 0.3769 0.9434 0.8900 8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 03118 0.9316 0.8734 0.8163 0.7629 0.7130 0.6663 0.6227 0.5820 0.5439 0.5083 0.2584 0.9257 0.8573 0.7938 0.7350 0.6806 0.6302 0.5635 0.5403 0.500 04632 0.2145 Parkod 9% 10% 12% 13% 14% 1 2 3 4 5 6 7 8 9 10 0.9174 08117 07122 07094 0.6492 0.5913 470 60 CAS som 1794 0.9091 0.8264 07510 0.6830 0.6202 0.5AS 0.5132 04666 0421 0.3856 0.1486 11% 0.2009 0.8116 0.7312 0.6587 05935 0.5346 0.4817 04339 0.3209 03522 0.1240 0.0929 0.7972 0.7118 DASS 05074 0.5066 0.4523 0,4039 0.360 0.3220 0.1037 0.3850 0.7831 0.6931 0.6133 0.5429 0.4803 04251 0.3762 0.3309 0.2946 0.0 0.8772 0.7695 0.6750 0.5921 0.5194 04554 0.3996 2506 0.3075 0.2677 0.6728 15% 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.0611 20% 0.8332 0.6944 0.5787 0.4823 0.4019 0.3349 02091 02326 0.1938 0:1615 00261 25% 0.010 0.6400 0.5120 0,4096 0.327 0.2621 0.2097 0.1678 0.1312 0.1074 0.0115 TABLE 11.4A Preseat Value of Annulty of $15 5% 6% 8% 7% 4% 29 4.25% Period 3% 3.75% 1 2 8 a de - A re - 4 5 6 7 0.9804 1.9416 2.6939 3.8977 4.7135 5.8014 64120 7.3255 8.1632 B.9826 163514 09709 19135 28286 3.7171 45797 5.4172 6.2303 7.0197 7.7861 8.5302 14.6775 10% 0.9639 1.8929 27883 3.6514 4.480 5.2551 6,0679 6.3125 7:5208 8.2128 13.8942 0.9615 18861 27751 36299 4.4558 5.2421 6.0021 67327 7.4353 8.1109 13.5703 0.9592 1.8/M 2.7620 3.80B6 4,4207 5.1997 5.9470 6.6638 7.3513 3.0109 13.2914 13% 0.9524 1.8594 2.7232 3.5160 4.3295 5.0757 5.78A 6.4632 7.1078 7.7217 124622 14% 0.9834 1,6334 26730 34651 4.2124 4.9173 5.5824 2098 6.8017 7.3601 11.4699 0.9346 1.8080 26243 3.3872 4.1002 4.7665 5.3893 5.9713 65152 7.0236 10.5MO 0.9259 1.7603 25771 3.3121 3.9977 4.6229 5.2064 5.7466 6.2469 67101 9.8181 10 20 Periods 9% 11% 12% 15% 20% 25% 1 2 4 5 6 7 B 9 10 20 0.9174 1.7991 25313 3.7777 3.8897 4.489 5.6330 5.5348 5.9752 64177 9.1285 0.9091 17355 248052 3.7697 37908 4.3553 BABA 5.3349 57970 6.1466 8.5136 0.9019 1.7123 2.437 1024 3.4959 4.2305 4.7122 5.1461 5.5370 58892 7.9633 0.8979 1.6901 2.4018 3.0373 3.5048 1114 4.5639 4.9676 5.3282 5.65112 7.484 0.8550 1.6581 23612 2.9745 3.512 3.9275 4.4226 27968 5.1337 5.4242 7.6248 0:8772 1.6467 2.3216 2.9137 3.4331 3.8887 42983 46389 4.9464 5.2761 6,6731 08656 16257 22832 2.8550 3.3522 37845 41604 4.4373 4.7716 S.1198 62593 0.8333 1.5278 2.1065 25887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.8696 8000 1.4400 1.9520 23616 26893 2.9514 3.1611 3.3299 3.4631 3.5705 3.9539 There is one payment och period