Question: The premium over book value is the difference between equity market value and equity book value. According to the residual earnings model, which of the

The premium over book value is the difference between equity market value and equity book value. According to the residual earnings model, which of the following actions will result in the biggest increase in the premium over book value?
Question 26Select one:
a.
A decrease in return on common equity and a decrease in book value
b.
A decrease in return on common equity and an increase in book value
c.
An increase in return on common equity and a decrease in book value
d.
An increase in return on common equity and an increase in book value

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