Question 2 options: 12% 4% 15% 20% Please show work so I can understand how to get the correct answer. Thanks! Solution Operating Income 60000 Less:Residual Income 12000 Required Minimum Income 48,000 Average Operating Assets 400,000 Required Rate of Return (Required Minimum Income/ Average Operating Income) 12.00% .

1. Question 2 options:
12%
4%
15%
20%
Please show work so I can understand how to get the correct answer. Thanks!
a) 12%
b) 4%
c) 15%
d) 20%
Solution
Operating Income 60000 Less:Residual Income 12000 Required Minimum Income 48,000
Average Operating Assets 400,000 Required Rate of Return (Required Minimum Income/
Average Operating Income) 12.00%