Which of the Following Approaches to Stock Valuation Is Not

question 22

Multiple Choice

Which of the following approaches to stock valuation is not based on a multiple of some figure from the financial statements?

• A) the price to cash flow approach
• B) the price to sales approach
• C) the dividends-and-earnings approach
• D) the price to earnings approach

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Definitions:

Pledging

The act of committing or promising to support something, often by donating money or another resource.

Finance Company

A business that provides loans to individuals or organizations, making profits from the interest charged on these loans.

Receivables

Money owed to a company by its clients or customers for goods or services provided on credit.

Floor Planning

A method used in retail and wholesale to finance inventory, where a loan covers the cost of goods held in stock until they are sold.