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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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