A ratio comparing a company's market value with its operating cash flow is the price to:
ACard float
BCost floor
CCase flow
DCash flow
Answer & Solution
Correct answer: D. Cash flow
1. Earnings can be distorted by accounting choices.
2. Operating cash flow offers a harder comparison.
3. That ratio is price to cash flow.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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