Most Analysts Prefer Using Price to Free Cash Flow Rather

question 54

Multiple Choice

Most analysts prefer using price to free cash flow rather than price-to-earnings (P/E) ratio because price to free cash flow is:

• A)Easier to compute.
• B)More accurate than cash flow per share.
• C)A stricter measure that reduces the cash flow by the amount of capital expenditures.
• D)More reliable as a measure of performance.

Analyze gender differences in spatial abilities and the skills involved.

Understand test behaviour, particularly the outcomes of changing answers on multiple-choice tests.

Associate key figures with significant psychological theories and concepts.

Identify areas of research related to cognitive psychology and the roles of psychologists in applied settings.

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Consolidated Net Income

The total earnings of a corporation and its subsidiaries after tax, representing the total profit attributable to the parent company and its shareholders.

Acquisition

The process by which one company takes over another company, either by purchasing it or merging with it.

Amortization

The process of gradually writing off the initial cost of an asset over a period.