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Question 24. Shown below are data for five companies from the same industry. Std Deviation of Operating profit after tax for the period 1994-2004

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Question 24. Shown below are data for five companies from the same industry. Std Deviation of Operating profit after tax for the period 1994-2004 Std Deviation of Cash flow from operations for the period 1994-2004 Company A 1.4 Company B 1.3 Company C 1.2 Company D 1.2 Company E 1.3 1.2 1.3 1.4 1.8 2.7 From this data alone, which company appears to be smoothing its earnings more relative to cash flow from operations? (A) Company A (B) Company B (C) Company C (D) Company D (E) Company E I

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