An advantage to using earnings growth rather than cash flow growth to estimate the present value of the future cash flow stream is that
A) cash flows to be lumpier than net income.
B) historical cash flows could have more easily been manipulated by management.
C) there are fewer factors that determine earnings, so there are fewer opportunities for estimation errors.
D) net income is less risky than cash flows.
Correct Answer:
Verified
Q1: Which of the following income statement accounts
Q2: The detailed projection period
A)should be long enough
Q3: The most important item to forecast in
Q5: Which of the following statements is (are)true?
A)It
Q6: The following information has been collected from
Q7: The following information is provided for Hypothetical
Q8: What is a major difference between the
Q9: What are the two guidelines presented in
Q10: The following information is provided for Hypothetical
Q11: The following information has been collected from
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