The Price- To- Cash- Flow Method of Share Valuation Generally

question 4

Multiple Choice

The price- to- cash- flow method of share valuation generally

• A) uses EBITDA as the cash flow value.
• B) applies the P/E multiple to the cash flow per share value.
• C) produces a cash flow multiple that is greater than the P/E multiple.
• D) relies on historical cash flows.

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Definitions:

Water Molecules

The smallest particle of water, made up of two hydrogen atoms bonded to one oxygen atom, essential for most forms of life.

Cohesive

The property of substances to stick together or the action of forming a united whole, often referring to the unity within a group or material.

Hydrostatic Pressure

The pressure exerted by a fluid at equilibrium due to the force of gravity acting on the fluid.

Turgor Pressure

The pressure exerted by water inside the cell against the cell wall, providing structural support in plant cells.