Because NBC markets consumer staples, it is able to make use of considerable debt in its capital structure;

specifically, $80\%$ of the company's total assets of $$300,000,000$ are financed with debt capital. Its cost of

debt is $8\%$ before taxes, and cost of equity capital is $12\%.$ NBC achieved a pretax income of $$3\mathrm{.}4$ million

last year and had a tax rate of $21\%.$ What was NBC$\text{'}$s residual income?

a$)-$$$4,514,000$

b$)$ $$2,686,000$

c$)$ Cannot be determined

d$)$ $$7,200,000$

e$)$ $$$60,000,000$