High Cash Flow Is Generally Associated with a Higher Share

question 26

True/False

High cash flow is generally associated with a higher share price whereas higher risk tends to result in a lower share price.

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Definitions:

Current Ratio

A metric that assesses an organization's capability to cover its current liabilities with its existing assets.

Short-Term Bank Loan

A loan obtained from a bank that has a maturity of one year or less.

Accounts Payable

Money owed by a company to its creditors for products or services that have been delivered or used but not yet paid for.

NAICS

The North American Industry Classification System, which is used to categorize businesses and industries for statistical purposes in the United States, Canada, and Mexico.