The March 21, 1997, issue of the Wall Street Journal contains an article by Greg Ip entitled
Question:
The March 21, 1997, issue of the Wall Street Journal contains an article by Greg Ip entitled "Cash Flow Rise Could Be Prop to Stock Prices."
Instructions Read the article and answer the following questions.
(a) How is "free cash flow" defined in the article?
(b) What was the recent trend in free cash flow relative to earnings in the 1990s?
(c) How are stock prices related to companies' cash flows?
(d) Are there any negatives related to large free cash flows?
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Related Book For
Managerial Accounting Tools For Business Decision Making
ISBN: 9780471413653
2nd Canadian Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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