The March 25, 1996, issue of Barron's includes an article by Harry B. Ernst and Jeffrey D.

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The March 25, 1996, issue of Barron's includes an article by Harry B. Ernst and Jeffrey D. Fotta entitled "Weary Bull."

\section*{Instructions}

Read the article and answer these questions:

(a) The article describes a cash flow-based model used by investors. Identify the model and briefly describe its purpose.

(b) How does the model classify a firm's cash flows?

(c) Identify one way in which the cash flow classifications described in the article differ from those under GAAP.

(d) How can the model be used to predict stock prices?

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Related Book For  book-img-for-question

Financial Accounting Tools For Business Decision Making

ISBN: 9780471169192

1st Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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