HomeworkLib
Question

Can u please help me on this: High cash flow is generally associated with a higher share price whereas higher risk tends to result in a lower share price

Can u please help me on this:
High cash flow is generally associated with a higher share price whereas higher risk tends to result in a lower share price.
is it true of false?? and why

thx
managerial finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1
It is false, because share prices are inversely proportional to the number of shares outstanding. Share prices can be arbitrarily changed with stock splits or by combining shares.

There is, however, a tendency for VERY low-priced stocks (i.e. "penny stocks") to be risky and more volatile, in the USA at least. In some countries like Australia, there are many low-priced stocks with excellent cash flow.
answered by: Lexxi
1 0
Add a comment
Know the answer?
Add Answer to:
Can u please help me on this: High cash flow is generally associated with a higher share price whereas higher risk tends to result in a lower share price
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Please help assist on answering the following: 1. The cash flows of a project should include...

    Please help assist on answering the following: 1. The cash flows of a project should include the related changes in the tax account. True or False? 2. Taxes are considered cash flows of a project. True or False? 3. Fixed Costs causes operating cash flow to differ from net income. True or False? 4. Taxes causes operating cash flow to differ from net income. True or False? 5. Fixed costs must be paid even if production is halted. True or...

  • Can you help me with these micro-econ questions please 1. What important characteristic do all three...

    Can you help me with these micro-econ questions please 1. What important characteristic do all three types of imperfectly competitive firms share? 2. True or false: A firm with market power can sell whatever quantity it wishes at whatever price it chooses. Explain why you chose True/False 3. Why is marginal revenue always less than price for a monopolist but equal to price for a perfectly competitive firm? 4. Why do most successful industrial societies offer patents and copyright protection,...

  • can someone please read my risk and returns and let me know if it makes sense....

    can someone please read my risk and returns and let me know if it makes sense. if it does not could you explain please. Thanks Speech Accessibility Tracking Compare Proofing Language Comments Changes ink Resume Investing In a new factory Investing in a factory building is always one decision corporations will have to make and it is usually based off why a new factory is needed and if it will be profitable for a company to expand. McCormick and Company...

  • Can someone help me with 1-10 please and thank you! AutoSave A S U : Test2_3_10_2020...

    Can someone help me with 1-10 please and thank you! AutoSave A S U : Test2_3_10_2020 Home Insert Draw Design Layout References Mailings Review View Acrobat Arial 11 AX AA EEEEA Aabbccder AaBbCcDc Aabhcode AaBb Peste B IU x x A LA EEEEE Normal Heading Heading 2 Title "Microsoft Update Assistant Noti... Don't Allow Notifications may include alerts, sounds, and icon badges. Allow AB LA Subtite Styles Pare Create and Share Adobe PDF Request Sienatures 10 True and False questions...

  • Can you please help me with this questions below. Thanks Consider the REIT valuation spreadsheet presented...

    Can you please help me with this questions below. Thanks Consider the REIT valuation spreadsheet presented in class. For each of the following scenarios, and all other things equal, determine whether each scenario will increase, decrease or won’t affect the probability that new investors will achieve their levered required rate of return. a. The price of the REIT is lower. b. A distribution is defined for NOI growth rate, where the average value remains the same, but the right “tail”...

  • can I please have answer with solutions? thank you! Stocks with higher market risk should have...

    can I please have answer with solutions? thank you! Stocks with higher market risk should have higher returns. True 40.) Aztec stock two times risky as the market on average. Given the market risk premium of 10%, a risk freera using CAPM what is the expected return of Aztec? 41.) You purchased a share of stock for $35.40 seven years ago, and sold it today for $58.37. No dividends were paid out of the seven years, but you did receive...

  • please help Question 1 2 points Save Answer Projects C and D both have normal cash...

    please help Question 1 2 points Save Answer Projects C and D both have normal cash flows and are mutually exclusive. Project C has a higher NPV exceeds 12%. Which of the following statements is CORRECT? O Project D is probably larger in scale than Project C. OProject C probably has a faster payback the WACC is less than 12%, whereas Project D has a higher NPV if the WACC Project C probably has a higher iRR The crossover rate...

  • may someone help me? and please no solution fro the manuall solution thanks LIVIUM I U...

    may someone help me? and please no solution fro the manuall solution thanks LIVIUM I U ULPLUI. 22 Explain how the principle of separation of duties is violated in each of the following situations. Also, suggest one or more procedures to reduce the risk and exposure high- lighted in each example. 1 1 1 Loubo bod quit the 1. An accounts payable clerk recorded invoices received from a company that he and his wife owned and authorized their payment. j....

  • Can someone please help me do a grammar check on this to help me write it...

    Can someone please help me do a grammar check on this to help me write it correctly. A) The Cross Dock flow DC model is victimization departing trucks for the aim of shipping the merchandise on a similar day of dispatch to stores.It has reduced or eliminated the price, that required for building and storing merchandise in a list. It doesn't need any area for storage and lower ceiling and smaller footprint warehouse used for this model. This cross dock...

  • can someone help me with 13 please d26 50 12 Unlavorable materials price and quantity variances...

    can someone help me with 13 please d26 50 12 Unlavorable materials price and quantity variances are generally the responsibility of the Price Purchasing department Purchasing department Production department Production Department Quantity Purchasing Department Production Department Production Department Purchasing Department c. 13. Scorpion Production Company planned to use I yard of plastic per unit budgeted at $81 a yard. However the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had planned to make only...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT