Required Earnings Are The

question 5

Multiple Choice

Required earnings are the:

• A) adjusted net income multiplied by the required rate of return on common equity capital.
• B) net income the analyst expects the firm to generate multiplied by the required rate of return on common equity capital.
• C) the market value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital.
• D) the book value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital.