Which of the Following Approaches to Stock Valuation Is NOT

question 21

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-growth model
• D)the price-to-earnings approach

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Definitions:

Public Finance

The study of government revenue, expenditure, and adjustment of government budgets and its effect on the economy.

Circular Flow Model

An economic model illustrating the flow of goods, services, and money between households and businesses in an economy.

Federal Government

The national government of a federal country that shares power with regional governments like states or provinces.

Proprietary Income

Income generated from owned properties or businesses, exclusive to the owner or proprietor.