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

---

Definitions:

Current Year

The ongoing or present calendar year.

WARP

The Weak Axiom of Revealed Preference (WARP) is a criterion used to check for consistency in consumer choice behavior under the assumption of rationality.

Bundle

A set of goods or services sold together as a single package.

Revealed Preferences

An economic theory that determines consumer preferences by observing their purchasing behavior rather than through direct inquiry.