Question

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.

Answer

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