Which One of the Following Correctly Expresses the Clean Surplus

question 16

Multiple Choice

Which one of the following correctly expresses the clean surplus relationship?

• A)The change in book value per share is equal to earnings per share minus dividends per share.
• B)The change in retained earnings is equal to net income.
• C)The change in market value per share is equal to the change in book value per share.
• D)The change in market value per share is equal to earnings per share minus dividends per share.
• E)The rate of change in book value per share is equal to the firm's discount rate.

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