The price-to-cash-flow method of stock valuation generally
A) uses either EBITDA or operating cash flow from the cash flow statement as a measure of cash flow.
B) relies on historical cash flows.
C) produces a cash flow multiple that is greater than the P/E multiple.
D) applies the P/E multiple to the cash flow per share value.
Answer: A
Business
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All of the following are disadvantages of noninsurance transfers EXCEPT
A) The party to whom the potential loss is transferred may be unable to pay. B) The transfer may fail because the contract language is ambiguous. C) The only potential losses that can be transferred are those that are not commercially insurable. D) The noninsurance transfer may be costly.
Business
Which of the following must be followed?
A) standards B) guidelines C) both A and B D) neither A nor B
Business