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The imputed interest rate used in the residual income approach to performance evaluation can best be described as the:

A. Average lending rate for the year being evaluated.

B. Historical weighted-average cost of capital for the company.

C. Target return on investment set by the company’s management.

D. Average return on investments for the company over the last several years.

Accounting Auditing Banking
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Date Posted: 2015/02/24
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Monam Ghaffar
by Monam Ghaffar , Assistant Manager Audit and Operations , Al Fardan Goup (Alfardan Jewels and Precious Stones)

Target return on investment set by the company’s management.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

ANSWER C IS THE CORRECT ANSWER 

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