Which of the Following Statement(s) Is/are True

question 80

Multiple Choice

Which of the following statement(s) is/are true?
(A) If a division's return on investment (ROI) exceeds its cost of capital, then its residual income is positive.
(B) If a division's cost of capital equals its return on investment (ROI) , then its residual income is zero.

• A) Only (A) is true.
• B) Only (B) is true.
• C) Both of these are true.
• D) Neither of these is true.

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