To compute residual income, begin with net operating profits after tax (NOPAT) and subtract the total cost of capital measured as the weightedaverage cost of capital (WACC) times the total invested capital (CAPITAL)
To compute residual income, begin with netoperating profits after tax (NOPAT) and subtract thetotal cost of capital measured as the weightedaveragecost of capital (WACC) times the totalinvested capital (CAPITAL)