answersLogoWhite

0


Best Answer

Residual Income (RI) can be calculated with the following equation. RI = Operating Income - (Operating Assets x Minimum Required Rate of Return) Equals a $ amount. RI is often used to compare Investment Centers with the Return of Investments (ROI) equation. ROI = Operating Income / Operating Assets) Equals a %.

User Avatar

Wiki User

16y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How do you calculate residual income?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Who does Residual income of a firm belongs to?

The residual income of the firm belongs to


The residual income of the firm belongs to?

residual income belongs to the common stockholders.


Would you explain residual income guidelines for FHA loans?

FHA doesn't have residual income guidelines...this applies to VA loans


Which methods are used to calculate the value of business?

Answer:There are several methods to calculate the value for a company. 1. Using multiples, for example price/earnings ratio2. Using discounted cash flow (DCF) method3. Using the residual income model (RIM)


How you Calculate Provision for Income tax?

how to calculate provison for income tax


What are some ways that an individual could earn residual income?

There are a number of ways that one can earn residual income. Some of the ideas one might entertain are perhaps creating a blog with clickable advertisements which pay when they are clicked. Another idea is writing for sites that pay by advertisement income.


Where can one get information on residual income businesses?

In the UK the website Money and Freedom has information on residual income businesses. A website from Canada for the company Anderson Career Training Institute has further information about the pros and cons of investing in this type of business.


Building Income Investments?

The term "residual income" is a much underused term in the world of finance, yet it is one of the most powerful tools that an investor can use to build wealth and protect him or herself in the retirement years. Residual income simply means that an investment pays out without reducing the value of the principal. Dividends, or a business which runs itself, are examples of a residual income. Look for these types of income investments when thinking towards a retirement income. Even if these types of investments pay a lower interest rate, if they continue to give back, they are well worth it.


How do you calculate pretax net operating income?

How do you calculate pre-tax net operating income


What is combined residual?

The term combined residual refers to an amount of money that is being split between more than one person. This is income that they receive after the sale of an item.


The Guillermo furniture store scenario Compute the return on investment residual income and economic value added for the current situation?

The Guillermo furniture store scenario Compute the return on investment residual income and economic value added for the current situation?


How do you calculate our annual income?

i am not good in maths, but generally we can calculate annual income by multiplying our monthly income by 12.. as if know how much is our monthly income.. similarly by multiplying, we can find annual income on behalf of weekly income, or daily income or even on hourly income...