Which of the Following Statements Concerning the Price to Cash-Flow

question 104

Multiple Choice

Which of the following statements concerning the Price to Cash-Flow approach to stock valuation are true?
I.The Price to Cash-Flow method works just as well for non-dividend paying stocks as it does for dividend-paying stocks.
II.The Price to Cash-Flow calculate s the intrinsic value of a stock as the present value of future cash flows.
III.The Price to Cash-Flow ratio divides the market price of one share of stock by cash flow per share.
IV.The Price to Cash-Flow method does not directly calculate the intrinsic value of a share.

• A)I and II only
• B)III and IV only
• C)I, III and IV only
• D)I, II and III only

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Definitions:

Open Communication

The practice of freely sharing information and ideas in an organization, fostering transparency and collaboration.

Structured Activities

Tasks or engagements that are organized in a systematic way, often with clear objectives, procedures, and expected outcomes, to guide participants' actions.

Mechanistic Structure

An organizational design that is highly structured and formalized, characterized by clear hierarchies, rigid divisions of labor, and centralized decision making.

Specialized Tasks

Specific, narrowly defined job tasks assigned to individuals or groups, designed to increase efficiency and proficiency by focusing on a particular aspect of work.