A cash flow yield of 2.5 times is considered better than one of 3.0 times.

Name: A cash flow yield of 2.5 times is considered better than one of 3.0 times.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is false. A higher cash flow yield (such as 3.0 times) is generally considered better than a lower cash flow yield (such as 2.5 times) because it means that the company is generating more cash flow relative to its stock price.

A Cash Flow Yield of 2