Question
n investor thinks companies with strong operating cash flows, low capital and working capital requirements are better investments. What is their rationale? Select one: a.
n investor thinks companies with strong operating cash flows, low capital and working capital requirements are better investments. What is their rationale?
Select one:
a. Strong operating cash flow is more important than capital spending and working capital
b. The investor must have learned about the shareholder value revolution and decided cash is king.
c. The investor believes a firm can operate efficiently with minimal capital spending
d. A company that produces strong operating cash flows with relatively little requirements for capital and working capital spending produces proportionally more free cash flows.
e. The investor believes that working capital is a waste of money.
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