BEC Currency > Formulas > Flashcards

Formulas Flashcards

(7 cards)

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1
Q

RESIDUAL INCOME FORMULA FOR DETERMINING THE RETURN PART THAT YOU SUBTRACT AS IN OPERATING INCOME - REQUIRED RETURN ON

A

AVERAGE TOTAL ASSET * TARGET ROR

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2
Q

ROI IS __________ INCOME AND RESIDUAL IS ____________ INCOME

A

NET INCOME

OPERATING INCOME

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3
Q

Residual Income

A

OI - (AverageAssets * Required Rate of Return)

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4
Q

ROI is a $ or Percentage

A

Percentage

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5
Q

RI is a dollar or Percentage

A

Dollar

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6
Q

ROI is before or after taxes

A

Before taxes but before you take out interest

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7
Q

ROI

A

NOPAT/AVERAGE ASSETS

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