TestUstad

Price per ratio is divided by cash flow per share ratio which is used for calculating___________?

Correct answer: A. Price to cash flow ratioHire An Accountant

  • A. Price to cash flow ratioHire An Accountant
  • B. Sales to growth ratio
  • C. Cash flow to price ratio
  • D. Dividend to stock ratio

Explanation

Dividing price per share by cash flow per share produces the price-to-cash-flow ratio, a valuation multiple showing how much investors pay for each unit of cash flow.

Written and checked by , editorLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? [email protected]

About Business Finance

Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.

Practise Business Finance

975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Start a free Business Finance testAll Business Finance MCQs

Discussion

Stuck on an option, or know a faster way to get there? Ask or explain it here.

No comments yet. Be the first to explain this one.

Exams that ask Management Sciences questions like this

Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

GAT Subject Management Sciences40 MCQsHeadmaster and Headmistress Test Management Sciences15 MCQs

More Business Finance questions

A techniques uses to identify financial statements trends are included____________?

Companies that help to set benchmarks are classified as__________?

Total assets divided common equity is a formula uses for calculating___________?

Formula such as net income available for common stockholders divided by total assets is used to calculate__________________________?

Rule of 72 as a short cut method is explained by the formula:

If a company revaluates its fixed assets, the current ratio of the company will: