Answer:
The correct answer is letter "D": difference between the expenses that the analyst expects the firm to generate and the required earnings of the firm.
Step-by-step explanation:
Residual income represents the amount that is left after a company has paid all its capital costs. It is the result of acquiring assets to generate steady revenue over time. Real state, bonds, or stocks are examples of corporate and individual residual income.
Therefore, we could say that residual income is calculated by subtracting the expenses of a firm from its expected earnings out of different sources.