Consider the following statements about residual income: I. Residual income incorporates a firm's cost of acquiring investment capital. II. Residual income is a percentage measure, not a dollar measure. III. If used correctly, residual income may result in division managers making decisions that are in their own best interest and not in the best interest of the entire firm. Which of the above statements is(are) true?

I only.

II only.

I and II.

II and III.

I and III.