Q220
An economic value added method is specific type of method to calculate
A.
net income
B.
nominal income
C.
residual income
AnswerD.
residual investment
Answer: Option C
Solution
Answer: Option C
Solution:
An economic value added method is specific type of method to calculate residual income. Residual income is excess income generated more than the minimum rate of return. Residual income is a measurement of internal corporate performance, whereby a company's management team evaluates the income generated relative to the company's minimum required return.