The Value of a Stock Using the Price to Cash

question 8

True/False

The value of a stock using the price to cash flow approach is to multiply the P/E ratio times operating cash flow divided by the number of shares outstanding.

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Definitions:

Test-Retest

A method of determining the reliability of a test by administering the same test to the same subjects at two different points in time.

Correlation Coefficient

A numeric value that indicates the strength of the relationship between two variables.

Standard Error

A statistical measure that describes the accuracy with which a sample represents a population, often used in inferential statistics.

Degree of Reliability

A measure of the consistency or stability of test scores or measurements over time.