ratio. The market value per share of common stock divided by the firm's equity per share is called the value-equity price-value O book-value O price-book O market-equity Which one of the following statements is correct concerning the net income and cash flow of a firm? The earnings per share will usually equal the net income per share for most firms. Analysts rely on the net income of a firm and therefore ignore the cash flows. The primary difference between the net income and the operating cash flow of a firm is taxes. High quality earnings exist when the earnings per share is similar in value to the cash flow per share. The net income of a firm is unaffected by the depreciation method selected. as the discount rate is increased. Based on the dividend discount model, the current value of a stock will either decrease or remain constant remain constant O decrease O increase O either remain constant or increase