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Two companies, A and B, have the same ROEs, but Company A has a higher residual income. Which of the following would explain this, all
Two companies, A and B, have the same ROEs, but Company A has a higher residual income. Which of the following would explain this, all else equal?
A. | Company A is riskier than Company B. |
B. | Company A has higher expected future growth. |
C. | Company A has greater net book value. |
D. | Company A has lower ROA. |
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