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?

Group of answer choices

a. P 20 million

b. P 50 million

c. P 70 million