The Cash Flow Adequacy Ratio Is Defined As $\frac{\text {Total Cash Flow - Capital Expenditures }}{\text { Average Debt Maturing over Next Five Years}}$

question 132

True/False

The cash flow adequacy ratio is defined as:
$\frac{\text {Total Cash Flow - Capital Expenditures }}{\text { Average Debt Maturing over Next Five Years}}$

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Definitions:

Negative Growth Rates

A decrease over time in the measurable value of an economic indicator, such as GDP or investment value.

Expected Capital Gains Yield

The anticipated rate of return from an investment due to an increase in its market price, not including dividends or other income.

Dividend Yield

Defined as either the end-of-period dividend divided by the beginning-of-period price, or the ratio of the current dividend to the current price. Valuation formulas use the former definition.

Strong-Form Efficient

A hypothesis that states all information, both public and private, is completely reflected in stock prices, and no one can consistently achieve higher returns.