You Have Gathered Data About Three Possible Investments

question 2

Multiple Choice

You have gathered data about three possible investments.The data are as follows
The earnings and operating cash flows can be estimated to be as follows:
Firm A Firm B Firm C
Earnings Cash flow Earnings Cash flow Earnings Cash flow

• A) 4 14 2 14 20 14
• B) 7 8 11 4 10 4
• C) 10 -15 4 14 10 12
• D) 4 8 4 11 4 10