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The multiple comparing market value with operating cash flow is the:
APrice-to-cash-flow ratio
BPrice-to-credit-flow ratio
CPrice-to-capital-flow ratio
DPrice-to-client-flow ratio
Answer & Solution
Correct answer: A. Price-to-cash-flow ratio
1. Cash generated by operations is the base.
2. Market value sits on top.
3. It is the price-to-cash-flow ratio.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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