Which One of the Following Correctly Expresses the Clean Surplus

question 70

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.
• 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.
• E) The rate of change in book value per share is equal to the firm's discount rate.

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Definitions:

Wet Forest

A forest ecosystem characterized by high humidity and regular precipitation, leading to a dense understory and rich biodiversity.

Ideal Free Distribution

A theory in ecology predicting how animals distribute themselves among resources to maximize their fitness.

Equal Fitness

The scenario in which different genotypes or phenotypes within a population have the same likelihood of survival and reproduction, contributing equally to the next generation's gene pool.

Habitat

The natural environment in which a species lives, including all its living and non-living elements.