Cash Flow Per Share (CFPS)

question 16

Multiple Choice

Cash flow per share (CFPS)

• A) Is used by some analysts who are not willing to accept the accountants' definition of EPS.
• B) Is generally below a firm's EPS
• C) Is not as closely correlated with stock prices as primary EPS
• D) Is calculated using the bottom line on the cash flow statement.
• E) Must also be adjusted for a change in a firm's depreciation technique.

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Definitions:

Grocery and Discount Stores

Retail establishments that primarily sell food products and everyday items, often at reduced prices.

Hybrid Cars

Vehicles powered by a combination of internal combustion engines and electric motors, aiming to reduce fuel consumption and emissions.

Early Adopter

A person who uses or purchases new products, technologies, or innovations early in their lifecycle, often before the majority of consumers.

Early Majority Stage

A stage in the product adoption lifecycle where a product begins to gain acceptance among a larger segment of the population, following the innovators and early adopters.