Juan Company's After-Tax Operating Income Was $882 Million

question 75

Multiple Choice

Juan Company's after-tax operating income was $882 million.Average total assets were $5,900 million and average total stockholders' equity was $4,050 million.Juan Company's cost of capital was 10%.Juan Company uses total assets as the measure of invested capital.What is Juan Company's residual income?

• A) $187 million
• B) $292 million
• C) $477 million
• D) $667 million

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