Question
Please give me some advice here. One of the ways that investors assess the value of a company is based on its future cash flows
Please give me some advice here.
One of the ways that investors assess the value of a company is based on its future cash flows which ultimately affects future dividends and stock price.If you were called upon to analyze a particular company, you would obviously look at the balance sheet and would compare the cash balance of the current year to previous year's cash balances to see as to whether the company's cash balance has either increased or decreased.Would this in itself tell you the whole story behind the cash flows that are generated or is there another statement that would be better suited to your analysis?If there is, what statement would it be and what would it tell you?
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