Which of the following is not true regarding a target's previous cash flows?
A)They may serve as an initial base from which future cash flows may be estimated aFter accounting for other factors.
B)It may be easier to estimate the cash flows to be generated by a target than to estimate the cash flows to be generated from a new foreign subsidiary.
C)They are always good indicators of future cash flows.
D)All of the above are true.

Question

Quizplus · Accepted Answer

Previous cash flows are helpful in estimating future cash flows, but they are not always good indicators. Other factors, such as changes in the industry, competition, and market conditions, can impact future cash flows. Therefore, option C is not true. Options A and B are true statements.

Which of the Following Is Not True Regarding a Target's