Which of the following formulas computes residual income?
a. Residual Income = Operating Income - Return on Investment
b. Residual Income = Operating Income - (Minimum Rate of Return * Average Operating Assets)
c. Residual Income = After-tax Operating Income / (Actual Percentage Cost of Capital * Total Capital Employed)
d. Residual Income = Operating Income / Average Operating Assets
e. Residual Income = (Minimum Rate of Return * Average Operating Assets) / Operating Income
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