How can dividing income into its components (i.e., income from operations, income from continuing operations, discontinued operations,

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How can dividing income into its components (i.e., income from operations, income from continuing operations, discontinued operations, extraordinary items, and changes in accounting methods) give rise to economic consequences? State your answers in terms of the prices of a company’s equity securities, its credit ratings, the contracts it has with its creditors, and management compensation systems.

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