Which One of the Following Will Increase the Current Residual

question 77

Multiple Choice

Which one of the following will increase the current residual income of a firm?

• A)an increase in required earnings
• B)a decrease in the current earnings per share
• C)a decrease in future earnings per share
• D)a decrease in the required return on the firm's equity
• E)an increase in the firm's beginning book equity per share

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Definitions:

Warn Consumers

Refers to the act of informing buyers about potential risks or dangers associated with a product or service.

Sophisticated-user

A doctrine in law that exempts a manufacturer from liability if the user of its product is deemed to have expertise or knowledge sophisticated enough to assess the product's risks.

Failure to Warn

A legal concept in product liability whereby a manufacturer is held liable for not providing adequate warning to consumers about the risks or hazards associated with using a product.

Exterminator

An exterminator is a professional who specializes in eliminating pests and vermin from properties.