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Residual Operating Income and Abnormal Operating Income Growth (Easy) Here are financial statements for a firm (in millions of dollars): The firm has a required
Residual Operating Income and Abnormal Operating Income Growth (Easy) Here are financial statements for a firm (in millions of dollars):
The firm has a required return of 10 percent for operations. Calculate residual operating income for 2012 and 2011 using beginning-of-year balance sheet numbers. Then calculate abnormal operating income growth (in dollars) for 2012.
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