Prudential Corp. Inc. has total assets of P 10 billion financed 50% with debt and 50% equity. Cost of debt is 8% before taxes (5.6% after tax) and cost of equity is 10%. EBIT is P 500 million and a tax rate of 30%. What is its residual income?

A. 20 million

B. 50 million

C. 70 million