Can somebody help me with Q124
Thanks in advance
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
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Answer would be C.
Option A & B are arguments in favour of using P/CF multiplier, as to why should we use P/CF.
Option C is an argument against using P/CF ratio that CF doesn’t consider non cash item, i.e it is against accrual basis concept.