Research from Arthur,Cheng,Czernkowski (2010),report that earnings predictability has found that disaggregated cash flow models based on components of firm cash flows produce:

A) better forecasts of future earnings than methods based on aggregate net cash flows
B) earnings predictability that will help the firms directors in the decision making process
C) earnings numbers comparable in quality to those of only the best analyst
D) capital structure changes that could potentially affect cash flow

Question

Research from Arthur,Cheng,Czernkowski (2010),report that earnings predictability has found that disaggregated cash flow models based on components of firm cash flows produce:

A) better forecasts of future earnings than methods based on aggregate net cash flows
B) earnings predictability that will help the firms directors in the decision making process
C) earnings numbers comparable in quality to those of only the best analyst
D) capital structure changes that could potentially affect cash flow

Quizplus · Accepted Answer

Research from Arthur,Cheng,Czernkowski (2010),report that earnings predictability has found that disaggregated cash flow models based on components of firm cash flows produce better forecasts of future earnings than methods based on aggregate net cash flows.

Research from Arthur,Cheng,Czernkowski (2010),report That Earnings Predictability Has Found That