Which of the following formulas represents the residual income? Residual income Adjusted divisional income-Adjusted investment base b. Residual income Divisional income Residual income - After tax income - Cost of capital d. Residual income - After tax income - Cost of invested capital 7. A division reports the residual income in the amount of $95.000, after tax income in the amount of $410,000, and the investment base in the amount of $2,100.000. What is the cost of capital used in the calculation? a 14 b. 15% 1616 d. 17 8. Which of the following statements regarding EVA is incorrect? EVA is a concept dosely related to residual income b. EVA is a ratio EVA corrects for many of the accounting distortions that make the other measures myopic. d. It is difficult to implement EVA 9. Which of the following statements is incorrect? 2. Using the beginning balance of the investment base could encourage et acquisitions at the end of the year b. Measuring the manager only on the division's results is suboptimal decision makine in general, how a performance measure is used is more important than how it is calculated d. As long as the measurement method is understood, it can enhance performance evaluation 10. Which of the following statements regarding the measurement of the investment base is correct? a. Current cost is the original cost to purchase or build an asset. b. When ROI is used in conjunction with the net book value method, the Rol increases each year even though no operating changes take place ROI decreases each year under the historical cost method even though no operating changes take place dit is easier and less expensive to deal with current costs than to deal with historical costs